Cabinet Committee on Economic Affairs Current Affairs - 2020

Cabinet approves 2880 MW Dibang MPP in Arunachal Pradesh

The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi has approved expenditure on pre-investment activities and various clearances for Dibang Multipurpose Project (MPP) in Arunachal Pradesh for an amount of Rs.1600 crore.

About Dibang Multipurpose Project

Dibang MPP, a storage based hydro-electric project is the largest ever Hydro Electric Projects to be constructed in India. The envisaged height of Concrete Gravity Dam is 278 metres and on completion it will be highest dam in India.

Project is located on Dibang River, in Lower Dibang Valley District of Arunachal Pradesh. It envisages construction of a 278 m high Concrete Gravity Dam (above deepest foundation level), 6 Nos. horseshoe-shaped Head Race Tunnels of length varying from 300-600 m with 9 m diameter, an underground Power House and 6 Nos. horseshoe-shaped Tail Race Tunnels of length varying from 320 m-470 m with 9m diameter.

Key Objective behind construction of Dibang MPP is flood moderation as it shall prevent sizeable downstream area from floods.

Dibang MPP is one of the components of master plan of Brahmaputra Board for flood moderation of all rivers contributing to river Brahmaputra. After implementation of Brahmaputra Board’s master plan sizable area will be protected from flooding and help in mitigating perennial damage due to floods in Assam.

Project Cost: Estimated total cost of Project- Rs.28080.35 including Construction (IDC) & Financing Charges (FC) of Rs.3974.95 crore at June 2018 price level.

Project Completion:  Estimated completion period for project shall be 9 years from receipt of Government sanction.

Power Generation: Project shall generate 2880 Megawatt (12x240MW) power to produce 11223MU (Million Units) of energy in 90% dependable year.

Power Distribution: On completion, Government of Arunachal Pradesh will get 12% free power from project i.e. 1346.76 MU. 1% free power (i.e. 112 MUs) will be given in Local Area Development Fund(LADF). Estimated project life would be 40 years.

Clearances: Project already has all statutory clearances namely TEC, Environment Clearance, Forest Clearance (Stage-l) and Defence Clearance except Forest Clearance (Stage-II) for seeking Investment Sanction from Centre.

CCEA approves 3rd phase of PMGSY

Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister Narendra Modi has approved 3rd phase of Pradhan Mantri Gram Sadak Yojana (PMGSY) to consolidate 1,25,000 km of roads in the states.

Key Features of PMGSY-III Scheme

The 3rd phase of PMGSY (or PMGSY-III) involves consolidation of through routes and major rural links that connects habitations to Gramin Agricultural Markets (GrAMs), hospitals as well as Higher Secondary Schools.

Financial Implications-

Cost: An estimated cost of PMGSY-III would be Rs 80,250 crore over next five years out of which Central Share-Rs 53800 crore and State Share- Rs 26450 crore.

Fund: to be shared in ratio of 60:40 between Centre and State for all States except for 8 North Eastern and 3 Himalayan States (Jammu & Kashmir, Himachal Pradesh & Uttarakhand) for which it is 90:10.


Project Target period: 2019-20 to 2024-25.

Parameter for Road Selection: A candidate road selection is based on sum total of marks obtained by particular road on basis of parameters of population served, educational and medical facilities, market, etc.

Construction of Bridges: up to 200 m in Himalayan and NE States and 150 m in plain areas proposed from existing provisions of 100 m and 75 m in Himalayan and NE States and plain areas respectively.

Memorandum of Understanding: States shall be asked to enter into MoU before launching of PMGSY-III in concerned State for providing adequate funds for maintenance of roads constructed under PMGSY post 5-year construction maintenance period.


PMGSY-III scheme was announced by Union Finance Minister in Budget Speech for year 2018-19.

CCEA in its meeting held on 9th August, 2018 approved continuation of PMGSY-I & PMGSY-II beyond 12th FYP Plan and covering of balance eligible habitations under PMGSY-I by March 2019, PMGSY-II, and habitations under identified LWE blocks (100-249 population) by March 2020.

Progress under PMGSY: Under the scheme a total of 5,99,090 Km road length has been constructed since inception till April, 2019 inclusive of PMGSY-I, PMGSY-II and Road Connectivity Project for Left Wing Extremism Area (RCPLWEA) Scheme.