Extending co-operation with Saarc countries, the Cabinet cleared three major proposals aiming to strengthen energy, roads and rail transport The Union Cabinet on Thursday cleared three major schemes for strengthening the country's power transmission and distribution (T&D) network. It also cleared three major co-operation projects on energy and transport of the South Asian Association for Regional Cooperation (Saarc). A major decision was for the Deendayal Upadhyaya Gram Jyoti Yojana, with a Rs 43,000-crore investment, announced in this year's Union Budget for augmenting power supply to rural areas. This project is based on the Gujarat model of power reforms (done when Narendra Modi, now the prime minister, was head of the state government) for feeder separation of agricultural and domestic usage, and strengthening of T&D infrastructure in rural areas Announced for strengthening of sub-transmission and distribution in urban areas, including 100 per cent metering and underground cabling, an Integrated Power Development Scheme was also given approval. It requires an investment of Rs 32,612 crore, including budgetary support from the Centre of Rs 25,354 crore over the implementation period. This scheme would also look at completion of targets under the Restructured Accelerated Power Development and Reforms Programme for the 12th and 13th five-year plans, by carrying forward the approved outlay for the latter to this one. The Cabinet also approved a North Eastern Region Power System Improvement Project. This is for six states - Assam, Manipur, Meghalaya, Mizoram, Tripura and Nagaland. With an estimated cost of Rs 5,111 crore, including capacity building expenditure of Rs 89 crore, it would be implemented with a World Bank loan and the budget of the ministry of power, in a 50:50 ratio. Implementation would be through Power Grid Corporation, in association with the six states, in 48 months from the date of release of funds. Extending co-operation with Saarc countries, the Cabinet cleared three major proposals aiming to strengthen energy, roads and rail transport. A Saarc Regional Railways Agreement was cleared to facilitate multilateral agreements permitting free movement of people, goods and services within the region in the roads and rail sector. On the same lines, the Cabinet cleared signing and ratifying of a Saarc Motor Vehicles Agreement for the regulation of passenger traffic between India and Nepal. It authorised the ministry of road transport & highways to sign similar bilateral agreements with other Saarc member-states. A Saarc Framework Agreement for Energy Cooperation was also given approval. Announced last month by Piyush Goyal, minister of coal, power and renewable energy, it is aimed at improving the availability of power in the region. It would facilitate integrated operation of a regional power grid. OTHER DECISIONS ON POWER Deendayal Upadhyaya Gram Jyoti Yojana to augment supply for domestic use in rural areas and separate supply for agricultural consumption Integrated Power Development Scheme to strengthen the transmission and distribution network, with 100 per cent metering in urban areas North Eastern Region Power System Improvement Project for six states PACTS TO BE SIGNED AT SAARC MEET ON NOVEMBER 26-27 MoU with Nepal for strengthening cooperation in tourism Saarc agreement for energy cooperation among member-states gets nod Saarc Motor Vehicles Agreement allows member-states to ply in each other's territories for transportation of cargo and passengers, subject to conditions