Imphal, July 20 2010: Manipur government has given approval to the Composite Scheme of Development of Intra State Transmission and Distribution Network in the North Eastern states in power sector proposed by the Union Ministry for implementation with loan from the World Bank will be implemented in the state.

Union Power Ministry is proposing a project for improving the power transmission and distribution network among the states of the north eastern region.

The cost of the project is Rs 9890.16 crore and is to be taken up with a loan from the World Bank.

The total cost of the proposed project is to be shared among the eight states of the region, Manipur (Rs 727.67 crore), Nagaland (Rs 1209.19), Assam (Rs 2710.87 crore), Meghalaya (Rs 1363.76 crore), Mizoram (Rs 714.01), Tripura (Rs 970 crore), Arunachal Pradesh (Rs 1180.27 crore) and Sikkim (Rs 680.29 crore).

The rest Rs 333.73 crore will be inter-state share.

Once, the Composite Scheme of Development of Intra State Transmission and Distribution Network in the North Eastern states proposed by the Union Ministry is implemented the existing system of power transmission and distribution network in the region will improve remarkably enhancing its reliability in the region tremendously, the source believed.

States of the region including Manipur have agreed 'in principal' to participate in the proposed venture.

Others states like Assam and Tripura have already moved ahead for implementation of the scheme, the source said.

Manipur government had also agreed to the proposal for implementation of the scheme in the state by availing loan from the World Bank considering the poor transmission and distribution network in the state and an increasing demand for power in the state.

Manipur would be strongly connected with the neigbhouring states once the project is implemented.

The capacity of the existing transmission and distribution network is not sufficient to meet the demand of the state for the next decade or so.

The network in the state is already weak and more than 20 years old and will not be able to handle the ever increasing demand of the state.

The proposed scheme shall ensure a reliable and a very strong transmission and distribution network in the state sufficient to handle the demand for the next 20 year, or so, officials maintained.

The cost component for the state will be Rs 727.67 crore and the component of loan being Manipur's share to be posed to the World Bank for the scheme is Rs 618.52 crore which is 85% of the project cost.

The balance Rs 109.15 crore will be the equity of the project which constitute 15% of the total tentative project cost for the state.

Out of the proposed World Bank loan of Rs 618.52 crore, according to the prevailing policy of government of India to support special category state like Manipur, Rs 556.67 crore which is 90% of the loan amount will be converted as grant and balance 10% amounting to Rs 61.85 crore will be remain as loan component of the project for Manipur.

The scope of the scheme is stringent power transmission of 495 km of new 132 KV line, installation of 4 numbers of 132/33 KV new sub-stations at Thoubal, Tipaimukh and Gamphajol including augmentation of existing sub-station with capacity addition of 185 MVA, stringent of 2291 km of new 33 KV line and installation of 54 nos.of 33/11 KV sub-stations including augmentation of existing sub-stations with capacity addition of 244 MVA, the sources said.

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