Government approves institutional mechanism for smart grid projects

Government approves institutional mechanism for smart grid projects

The National Smart Grid Mission (NSGM) is an institutional mechanism which will plan, monitor and implement the policies and programs related to smart grid activities in the country.

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The government has approved the National Smart Grid Mission (NSGM), an institutional mechanism, for implementation of policies related to smart grid networks, Piyush Goyal, Minister of state for Power, Coal & New and Renewable Energy told Lok Sabha on Thursday. The NSGM is an institutional mechanism which will plan, monitor and implement the policies and programs related to smart grid activities in the country, the minister said. The total outlay of Rs 985 crore and a budgetary allocation of Rs 338 crore have already been allocated for the NSGM activities during the 12th Plan. The minister further said that a governing council headed by the Minister of Power and comprised of secretary-level officers of the concerned departments and the ministries will take care of approvals regarding all policies and programs for smart grid implementation. While the governing council approves the policies at the apex level, the empowered committee headed by Secretary (Power and comprised of joint-secretary level officers) will provide inputs to the apex level and further monitor, review and provide guidelines to smart grid projects. Besides this, a technical committee, headed by chairperson and comprised of representatives from industries and academia, will provide technical support to the empowered committee on technical aspects, standards development, and technology selection, among others. At the final level, the mechanism has a NSGM Project Management Unit (NPMU), headed by the director, which acts as an implementing agency for operationalization by checking the day-to-day operations of smart grid activities in the country. For financial assistance to projects, the NSGM has also been assigned with a budget that would provide grant up to 30% of the total project cost and even 100% grant for components such as training and capacity building, consumer engagement, among others. To monitor state-level operations, a state level mission chaired by the power secretary of the state has also been proposed. Supports related to training and capacity building to the State Level Project Monitoring Units (SLPMUs) for smart grid activities is being provided by NSGM directly. According to the minister, major activities envisaged under NSGM are development of smart grids and micro grids, establishing consumer engagements and training and capacity building, among others. Besides, NSGM’s activities also involve the implementation of micro grids, a smart electrical grid based on automation, communication and IT systems, that can monitor and control power flows from points of generation to points of consumption, the minister added.    

May 7, 2015 | 6:33 pm IST.