A $100,000 federal fund will help launch a feasibility study into providing water and electricity to areas of Tasmania's North-East.
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The funding, announced yesterday by Bass Liberal MHR Andrew Nikolic, will help support Dorset Economic Development Group's bid for agricultural expansion.
DEDG chairman Stephen Love said the study would help quantify a perceived shortage of electricity along Waterhouse coastal plains.
"New developments are happening in the area, especially in relation to dairy and pasture growth," Mr Love said.
"The perception is that there is a lot of opportunity for expansion in the area, but the lack of power supply is an impediment."
He said Commonwealth funding was still being sought for the area's irrigation scheme, which could be forthcoming with power in place.
Mr Nikolic said the economic group would also provide a $15,000 cash and in-kind contribution.
"There are opportunities on the horizon, it's about putting in place the sort of infrastructure that can leverage those opportunities," he said.
"It will give more reasons to invest, hire more people and help young people stay in the area with career paths."
The study's first interim report is due for December 31, with an anticipated March 2015 completion date.