Patna, Nov 22: The Power Grid Corporation of India Limited (PGCIL) has signed an MoU with the Bihar State Electricity Board (BSEB).

Patna, Nov 22: The Power Grid Corporation of India Limited (PGCIL) has signed an MoU with the Bihar State Electricity Board (BSEB).

The project aims at improving the overall distribution of electricity in the state by 2012 at an expenditure of Rs 1240.86 crore.

The four-party agreement was signed by PGCIL Chairman and Manganig Director (CMD) R. P. Singh, state Energy Secretary Rajesh Gupta, BSEB Chairman Swapan Mukherjee and Union Ministry of Power Director Lokesh Chandra in the presence of Bihar Chief Minister Nitish Kumar, state Energy Minister Dijendra Yadav, state Chief Secretary A. K. Sinha and several other senior officials.

The Bihar Chief Minister, Nitish Kumar, after signing the MoU asserted that following the completion of the third and final phase of the work within the next five years, the overall power scenario in the state would undergo a sea change to ensure better living conditions.

"The laying of transmission line by the Power Grid would go a long way in providing electricity to every household even in rural areas of the state," the Chief Minister said.

He also described the Rs 2,500 crore project as a "major milestone in the ongoing industrialisation programme of the state government."

"It has become the need of the hour to improve the entire power transmission network in Bihar in line with that of the national power grid so that the proposed extra generation of electricity by the NTPC and the BSEB are not wasted," Kumar said and requested the Power Grid CMD to ensure that the work of the final phase was completed on time.