Advance Action on Procurement and Retroactive Financing

Country/Borrower: Power Grid Corporation of India, Limited

Title of Proposed Project: MFF National Power Grid Development Investment Program

Name and Address of Executing Agency:

Powergrid Corporation of India Ltd.
Saudamini Plot No. 2, Sector-29
Gurgaon-122 001, Haryana
India
Tel: 91-124 2571700-719
Fax: 91-124 2571760, 2571761

Brief Description of Project:

The proposed Facility is expected to promote sustained social and economic prosperity and growth in India by providing adequate and reliable power supply. The outcome of the Facility is enhanced transmission network reliability and efficiency, which will be achieved through expansion and augmentation of the national transmission grid.

    The Facility will have the following components.

  1. Component-I: Upgradation of Transmission Corridor from Uttarakhand. This component is to provide adequate transmission arrangement for evacuation and reliable transfer of power generated from Tehri Valley in the state of Uttarakhand to constituents of the Northern Region, by establishment of 765/400kV, 10 x 500 MVA transmission capacity each at Tehri Pooling Station and Meerut within the existing site, construction of 103km of loop-in-loop-out (LILO) of Bareilly - Mandaula 400kV double-circuit (D/C) transmission line at Meerut (54km of loop-in and 49km of loop-out), and modification of series capacitors for operation at 765kV level. ADB funding is proposed for sub-stations only.
  2. Component-II: ±800kV High Voltage Direct Current (HVDC) Northeastern - Northern/Western Inter-connector. This component aims to deliver bulk power generated from hydro power stations in the North-eastern region to the power deficit regions of the Northern region and the Western region through construction of about 1,800km of ±800kV HVDC transmission systems from Biswanath Chariyali to Agra including 800kV converting and inverting stations at both ends, and construction of 400kV connecting transmission lines at Biswanath Chariyali for transfer of power from various power plants in the North-eastern region. ADB funding is proposed for ±800kV HVDC transmission lines only.

Brief Description of Works, Goods and Services to be Procured:

For each subproject, advance contracting for procurement of goods and services will be allowed, subject to these being eligible according to agreed procedures, and ADB's Procurement Guidelines.

Retroactive financing may be available under individual loans for expenditures incurred 12 months prior to the signing of the corresponding Loan Agreement, with a ceiling up to 20% for the loan amount. POWERGRID has been informed that approval of advance contracting and retroactive financing does not commit ADB to financing any of the proposed subprojects.

The goods and services to be procured include:
  1. construction of new 800kV gas insulated substation (GIS) switchyard and extension of existing 400kV GIS
  2. supply, erection, testing and commissioning of auto transformers
  3. supply, erection, testing and commissioning of bus reactors, shunt reactors
  4. tower packages
  5. ACSR Lapwing, Zebra and Panther conductors
  6. Insulators
  7. Hardware Fittings & Accessories
  8. Spacer Damper & Rigid spacer
Consulting Services: No consulting services required.

Date of Advance Action Approval: 22 February 2007