NERPC seeks exemption from NPV, relaxation of reserve estimation for NE

Syllad | The Rising MeghalayaJuly 22, 2025

The North Eastern Region Power Conference (NERPC) has sought exemption for the North Eastern region from Net Present Value (NPV), relaxation for reserve estimation, upgradation of transmission and distribution networks and inclusion of Sikkim in the north eastern zone.

Several critical issued affecting the power sector in the region were also raised during the recently concluded meeting of the NERPC chaired by Meghalaya Power Minister Abu Taher Mondal.

Speaking to media persons on Monday, Mondal informed that one of the key issues discussed was the net present value (NPV) calculation for forest cover. 

He explained that while the national forest cover is 21.76%, the North Eastern region has a significantly higher coverage of 53.76%. 

“(In view of this) we took a resolution that NE should be exempted from the NPV calculation to avoid adverse impacts on electricity generation and other components,” Mondal said.

The chairman of the NERPC also informed that the meeting has unanimously adopted a resolution urging for relaxation on reserve estimation, which determines the amount of reserve power each state should maintain.

He pointed out that the North Eastern states, including Meghalaya, Mizoram, and Tripura, are required to maintain a higher percentage of reserve power compared to larger states like Uttar Pradesh and Maharashtra. 

“We have adopted a resolution seeking relaxation in this requirement,” Mondal said while citing the disparity in reserve estimation between the North Eastern states and other larger states.

“Small states like Meghalaya, Mizoram, Tripura are tagged with bigger states like UP, Madhya Pradesh, Karnataka, Tamil Nadu. For the year 2025-2026, the intra state total up reserves has been considered that NE states should maintain 29%, 22% 13% for Meghalaya, Mizoram and Tripura. But in contrast the reserve assessed for most of the industry advanced and largely populated states such as UP, Madhya Pradesh, Maharashtra, Karnataka Tamil Nadu are very nominal say 3.16%, 4.5%. So we found that this is very harsh for the North Eastern states and it would be not possible for us to maintain in future,” he added. 

The conference also discussed the need for enhanced manpower and cyber security measures in the State Load Dispatch Centers. 

Mondal emphasized the importance of Government of India support in terms of financial resources, technology transfer, and software to mitigate cyber threats.

Further, the minister has also highlighted the need to upgrade the transmission infrastructure in the North Eastern region. He noted that the national grid is planning to upgrade to 1100 KV lines, and the region should also explore similar initiatives to strengthen its transmission and distribution network.

“If you see the national scenario, in National scenario earlier it was in the beginning it was 132 KV line, then they came up with 220 KV line, then they came with 400 KV line then 765 KV line and now the proposal is for a corridor of 1100 KV lines to evacuate power because of the increasing demand. Of course, NE India is not linked but what I heard is around 55,000 crores has been earmarked for that,” he said.

“In supplement, we also from the NE states we need some program in line with NORCEPS or any other new program to support so that we have our own strong transmission and also distribution network,” he added.

Meanwhile, the NERPC has also resolved to pursue with the Centre for the inclusion of Sikkim in North Eastern Zone. 

According to Mondal, Sikkim is currently part of the Eastern Zone for power sector purposes, despite receiving funding from the North Eastern Region for various development projects. 

“There are many scopes of having power projects in Sikkim. Now, as the funding is done through North East to Sikkim including the power department, so North Eastern states should have the first right to get power electricity from the projects in Sikkim but till now Sikkim has been included in Eastern Zone,” he said while adding “This matter informally I have raised with power minister of India in Sikkim and he agreed that it can be done and he also asked the chief minister of Sikkim (of course informally in the sidelines of our conference) that which way he want to go, he want to be in the eastern zone or north eastern zone.”

The minister further stated that a committee has been formed to explore the feasibility and examine the potential for power evacuation to the North Eastern region.

“Now when we studied, we find that a 400 KV line Bogaigoan, Siliguri transmission line is already existing and 220 KV Salakuti, Alipur transmission line is also existing and power is evacuated to northern region via 800 KV link also.

Since this may require certain things, we decided to form a committee to see whether it is possible to bring north eastern to region as per the power generation and transmission in the region or not, “he added.