New Delhi, July 16 (IANS): The cabinet committee on economic affairs (CCEA) on Thursday approved the setting up of intra-state electricity transmission systems in seven states at a cost of Rs.3,419 crore, Finance Minister Arun Jaitley said.

The CCEA, at its meeting here, approved the creation of an intra-state transmission system in Andhra Pradesh, Gujarat, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra and Rajasthan at an estimated cost of Rs.8,548.68 crore, with the government of India contributing Rs.3,419.47 crore (40 percent of the total estimated cost of project) from the National Clean Energy Fund," an official statement said.

The rest of the financing is proposed to be met through a loan from the German government-owned development bank KfW (40 percent) and state contribution (20 percent), the statement added.

The project involves "installing over 7,800 circuit kilometres of transmission lines in these seven states", it said.

These states are rich in renewable resources and large-capacity renewable power projects are planned there, the statement added.