Power Grid approves Rs 209 crore North-Eastern expansion project

Power Grid Corporation of India Limited (PGCIL) has cleared a new investment proposal worth Rs 209.38 crore for strengthening transmission infrastructure in the North-Eastern region. The project, named North-Eastern Region Expansion Scheme-XXIII (NERES-XXIII), was approved by the company’s Committee of Directors on Investment on Projects on August 26, 2025.

According to the regulatory filing, the scheme is expected to be completed within 30 months from the date of project allocation. This sets the commissioning deadline for February 3, 2028. The scheme will be implemented under the Regulated Tariff Mechanism (RTM) mode.

The project was first discussed in the 30th meeting of the National Committee on Transmission (NCT) held on May 30, 2025. Central Transmission Utility of India Limited (CTUIL) had informed that the scheme was awarded to Power Grid in June 2024 with an estimated cost of Rs 73.47 crore. Subsequently, in January 2025, Power Grid requested a review of the project cost, citing a higher Detailed Project Report (DPR) estimate of Rs 200.15 crore, mainly on account of right-of-way (RoW) compensation.

CTUIL carried out a revised cost assessment based on September 2024 price levels, which worked out to Rs 117.65 crore. During deliberations, the NCT expressed concern over the seven-month delay between the award of the scheme and Power Grid’s communication about the cost escalation. The committee also noted that RoW issues should have minimal impact since the scope only involves stringing of a second circuit on existing double-circuit towers.

CTUIL was asked to obtain clarifications from Power Grid and present a revised cost comparison. The updated costing highlighted that the DPR estimate remained significantly higher, driven by RoW compensation. After deliberations, the NCT approved the scheme for implementation under RTM mode at a revised cost base of Rs 117.65 crore.

Despite this, the final investment approval by Power Grid has been set at Rs 209.38 crore, higher than both the original estimate and the CTUIL revision.

The scope of NERES-XXIII includes:

• Stringing of the second circuit of the 132 kV Pasighat–Roing line (103 km, Rs 35.23 crore).
• Stringing of the second circuit of the 132 kV Roing–Tezu line (73 km, Rs 24.97 crore).
• Stringing of the second circuit of the 132 kV Tezu–Namsai line (95.24 km, Rs 32.57 crore).
• Substation extensions at Pasighat, Roing, Tezu, and Namsai with additional 132 kV AIS line bays (Rs 24.88 crore combined).

NERES-XXIII is expected to improve grid reliability and power flow in Arunachal Pradesh and neighbouring states, while enhancing integration of the North-Eastern region with the national grid.

The featured photograph is for representation only.