New Delhi : The government has approved the National Smart Grid Mission (NSGM) for planning, monitoring and implementing smart power grids with an outlay of Rs.980 crore, parliament was told on Thursday.

"Government has approved National Smart Grid Mission (NSGM) -- an institutional mechanism for planning, monitoring and implementation of policies and programs related to Smart Grid activities," Power Minister Piyush Goyal told the Lok Sabha in a written reply.

He said the total outlay for NSGM activities for the 12th Plan (2012-17) is Rs.980 crore with a budgetary support of Rs.338 crore.

The NSGM aims to implement a smart power grid based on the latest technology in automation, communication and IT systems that can monitor and control power flows from points of generation to points of consumption, he added.

Goyal said the NSGM will have a three-tier structure, with a governing council headed by the power minister, at the top. The council, which will have secretary-level officers of ministries concerned as members, will approve all policies and programmes for implementing the smart grid.

The second level will have an empowered committee headed by the power secretary, with joint secretary level officers of ministries concerned as members. This committee will provide policy inputs to the governing council and approve, monitor and review specific projects.

The third tier will comprise a technical committee headed by the chairperson of the Central Electricity Authority.

"Grant of up to 30 percent of the project cost is available from the NSGM budget. For selected components such as training and capacity building, consumer engagement etc, 100 percent grant is available," the minister said.