Cabinet approves Rs 8,550 crore power transmission project covering seven states

NEW DELHI: The government on Thursday approved setting up of an intra-state power transmission system at a cost of Rs 8,550 crore to connect renewable power projects in seven states, including Rajasthan, Gujarat, Andhra Pradesh and Karnataka.

The cabinet committee on economic affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved creation of the power corridor also connecting Himachal Pradesh, Madhya Pradesh and Maharashtra. "These states are rich in renewable resource potential and large capacity renewable power projects are planned there. Creation of an intrastate transmission system will facilitate evacuation of renewable power from generation stations to load centres," an official statement said.

The Centre’s National Clean Energy Fund (NCEF) will contribute about Rs 3,420 crore, 40 per cent of the total cost of the project, it said.

The project will be funded by loan from KfW covering 40 per cent of the cost and the remaining 20 per cent from state contributions, the statement said.

The project includes setting up of 48 new grid sub-stations of different voltage levels and 7800 circuit kilometers of transmission lines in these seven states.