Agartala gets ₹1,151-crore underground power cabling project under Smart Grid plan
Synopsis
Agartala has launched a ₹1,151-crore underground power cabling project — one of the northeast's largest urban electricity upgrades — funded jointly by the Centre, the Tripura government, and the Asian Development Bank. Alongside it, the PM Surya Ghar solar scheme was rolled out targeting 1.5 lakh low-income families, with bills potentially slashed to near zero within six months.
Key Takeaways
Agartala's ₹1,151-crore underground electricity cabling project was launched on 29 October 2026 under the Agartala Smart Grid initiative.
Funding is split between the Centre (₹495 crore) , the state government (₹131 crore) , and an ADB loan of ₹525 crore .
Horizontal installation techniques will be used to minimise road disruption during construction.
The PM Surya Ghar: Muft Bijli Yojana was simultaneously launched under the ULA model, targeting 1.5 lakh families within six months .
Eligible households will reportedly contribute just ₹1,000 as a security deposit, with rooftop solar installation facilitated by the state.
Chief Minister Manik Saha and Power Minister Ratan Lal Nath attended the bhumi pujan ceremony.
An ambitious ₹1,151-crore underground electricity cabling project covering the entire Agartala Municipal Corporation (AMC) area and its outskirts was formally launched on Thursday, 29 October 2026, marking one of the largest power infrastructure investments in Tripura's history. The project will replace the city's overhead electricity cables with a fully underground network, modernising power distribution across the state capital.
Project Funding and Structure
A senior official of the Tripura State Electricity Corporation Limited (TSECL) confirmed that the project is being implemented under the Agartala Smart Grid initiative. The financing is structured as a three-way arrangement: ₹131 crore from the state government, ₹495 crore from the Centre, and a ₹525-crore loan from the Asian Development Bank (ADB). The bhumi pujan ceremony marking commencement was attended by Chief Minister Manik Saha, Power and Agriculture Minister Ratan Lal Nath, Tripura Assembly Deputy Speaker Ram Prasad Paul, and AMC Mayor Dipak Majumder, among others.
What the Underground Cabling Will Change
Power and Agriculture Minister Ratan Lal Nath said the completed network would improve the city's visual landscape while delivering a more reliable electricity distribution system. Addressing concerns about road disruption during construction, Nath clarified that horizontal installation techniques would be used, requiring only small openings at selected locations rather than large-scale excavation across the city. He said the state government had studied infrastructure and technology practices in countries including Germany, Switzerland, Austria, Italy, and Malaysia, as well as several Indian cities, before finalising the approach.
PM Surya Ghar Scheme Launched Alongside
The PM Surya Ghar: Muft Bijli Yojana was also launched at the event under the Utility-Led Aggregation (ULA) model, with a specific focus on economically disadvantaged households with low electricity consumption. Under the first phase, the state government aims to bring 1.5 lakh families under the scheme within six months, with the selection process being carried out through the relevant civic bodies. According to Minister Nath, eligible beneficiaries would reportedly need to contribute only ₹1,000 — treated as a security deposit — with the state facilitating rooftop solar installation. Once systems are operational, beneficiaries could see their electricity bills reduced to near zero, depending on consumption and system performance, Nath said, adding that families consuming around 50 units per month stand to benefit the most.
Government's Broader Infrastructure Commitment
Minister Nath emphasised that electricity forms the foundation of development and that modern, reliable power infrastructure is essential for regional growth. He stated that the state government had moved beyond announcements and was actively implementing projects to modernise Agartala's power grid and provide relief to economically weaker households. The government has reiterated its commitment to completing the underground cabling project within the stipulated timeframe, backed by the combined financial support of the Centre, the state, and the ADB. This comes amid a broader national push to upgrade urban power distribution networks under Smart City and Smart Grid frameworks across India. Agartala's project is among the larger such undertakings in the country's northeastern region, and its successful execution will be closely watched as a model for other state capitals in the area.
Point of View
151-crore outlay is significant for a small state capital, but the real test will be execution — underground cabling projects in Indian cities have a poor track record of staying on schedule and within budget. The ADB's involvement adds a layer of accountability through loan conditionalities, which could help, but Tripura's project management capacity has historically been constrained. The simultaneous launch of the PM Surya Ghar scheme under the ULA model is the more immediately consequential move for ordinary households; the 1.5-lakh-family target in six months is ambitious and deserves scrutiny on selection process transparency. Whether low-income families actually see near-zero bills will depend on system quality and post-installation maintenance — the weakest link in most state-run rooftop solar programmes.
NationPress
30 Oct 2026
Frequently Asked Questions
What is the Agartala underground power cabling project?
It is a ₹1,151-crore project launched on 29 October 2026 to replace Agartala's overhead electricity cables with an underground network across the entire AMC area and its outskirts. It is being implemented under the Agartala Smart Grid initiative with funding from the Centre, the Tripura state government, and the Asian Development Bank.
Who is funding the Agartala underground cabling project?
The project is financed through three sources: ₹495 crore from the Centre, ₹131 crore from the Tripura state government, and a ₹525-crore loan from the Asian Development Bank (ADB). The combined outlay amounts to ₹1,151 crore.
Will there be major road disruptions during construction?
Power Minister Ratan Lal Nath said horizontal installation techniques would be used, requiring only small openings at selected locations rather than extensive excavation across the city. The approach was reportedly informed by practices studied in Germany, Switzerland, Austria, Italy, Malaysia, and several Indian cities.
What is the PM Surya Ghar: Muft Bijli Yojana and how does it apply in Tripura?
The PM Surya Ghar: Muft Bijli Yojana is a central government scheme providing free electricity through rooftop solar installations. In Tripura, it was launched at the same event under the Utility-Led Aggregation (ULA) model, targeting 1.5 lakh low-income families in the first phase, with eligible households reportedly contributing only ₹1,000 as a security deposit.
When is the underground cabling project expected to be completed?
The Tripura state government has stated its intention to complete the project within the stipulated timeframe, though a specific completion date has not been publicly announced. Officials have reiterated the government's commitment to timely delivery backed by ADB, Centre, and state funding.
