NERPSIP Scheme for 8 July 2025

The NERPSIP Scheme or North Eastern Region Power System Improvement Project is an initiative aimingA at strengthening the intra-state transmission and distribution systems in India’s North-Eastern Region (NER). Initially the project got approved in December 2014 by the Government of India, this scheme is a crucial step toward addressing the challenges related to the Distribution Infrastructure and increasing its economic growth.

NERPSIP Scheme History

The origins of NERPSIP Scheme can be noticed in the Pasighat Proclamation on Power during the North Eastern Council’s Sectoral Summit in 2007. This summit emphasized the urgent need to enhance transmission, sub-transmission, and distribution systems in the NER and Sikkim. Following these recommendations, a comprehensive plan was developed by the Central Electricity Authority (CEA) in collaboration with POWERGRID and the respective state governments.

NERPSIP Scheme Implementation

NERPSIP Scheme is a Central Government Scheme under the Ministry of Power. The project is jointly funded by the Government of India and the World Bank on a 50:50 basis, except for the Rs. 89 crore allocated for capacity building, which is fully funded by the Government of India.

The scheme’s total project cost, originally estimated at Rs. 5,111.33 crore, was revised to Rs. 6,700 crore in December 2020. POWERGRID, a Maharatna company under the Ministry of Power, serves as the implementing agency in collaboration with six beneficiary states:

1. Assam
2. Manipur
3. Meghalaya
4. Mizoram
5. Nagaland
6. Tripura

NERPSIP Scheme Key Objectives

NERPSIP Scheme Key Objectives include:

• Establishing a reliable and efficient power grid to improve electricity connectivity to emerging load centers.
• Increasing the overall economic growth of the region by increasing per capita power consumption and creating employment opportunities.
• Ensuring all categories of consumers benefit from grid-connected power systems.

NERPSIP Scheme Impact

NERPSIP Scheme is more than just a power project; it is a transformative initiative aimed at addressing long-standing energy deficits in the North Eastern Region. Some of the NERPSIP Scheme Impact include:

• The creation of a power grid that reduces dependency on diesel generators and improves access to electricity.
• The project’s implementation involves hiring local skilled and unskilled labor, generating substantial job opportunities.
• Comprehensive Scheme for Arunachal Pradesh and Sikkim
• In addition to the NERPSIP Scheme, the Government of India approved a separate project for Arunachal Pradesh and Sikkim in October 2014, initially estimated at Rs. 4,754.42 crore and later revised to Rs. 9,129.32 crore. 
  • This scheme is funded by the Government of India, highlighting its strategic importance in strengthening power infrastructure in the remotest regions of India.