Power Transmission Improvement (Sector) Loan
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Location
Nationwide
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Sector
Energy /Transmission & Distribution
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Initial Listing
1 April 1998
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Most Recent Update
1 May 2007
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Executing Agency(ies)
Power Grid Corporation of India Limited
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- Missions
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| TA Fact-Finding |
Loan Fact-Finding |
Pre-Appraisal |
Appraisal |
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11-22 May 1998 |
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5-19 Sep 1998 |
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Loan Approval Date
6 October 2000
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Estimated Completion Date
June 2003
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- Cost and Financing Plan (in US$ million)
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| Source |
Foreign Cost |
Local Cost |
Total |
| Bank |
250.00 |
0.00 |
250.00 |
| Cofinancing |
120.00 |
16.30 |
136.30 |
| Borrower |
0.00 |
0.00 |
0.00 |
| Beneficiaries |
24.20 |
81.00 |
105.20 |
| Others |
0.00 |
0.00 |
0.00 |
| Project/Program Cost |
394.20 |
97.30 |
491.50 |
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OCR |
ADF |
Total |
| Loan Amount |
250.00 |
0.00 |
250.00 |
- Description
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The Project comprises two components: part A: upgrading and expansion of 400 kilovolt (kV), 220 kV and 132 kV transmission systems to transfer additional power, to improve system reliability, and to enhance the efficient utilization of power plants; and part B: establishing 400 kV and 220 kV transmission systems to evacuate the power generated by the power stations of the central utilities.
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| Strategic Development Objectives |
- Primary
- Economic Growth
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- Secondary
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- Rationale
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The Project furthers the ongoing power sector reforms at the central level to (i) optimally utilize generation capacity by strengthening the power network to provide transmission capacity for surplus generation; (ii) improve governance by diverting the supply of power from delinquent states; (iii) build long-term institutional capacity; (iv) improve efficiencies by introducing competition in generation; and (v) facilitate private sector participation by providing a framework for transmission development by the private sector.
- Objectives and Scope
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The Project's strategic objectives are to support power sector reforms through (i) enhancing private sector participation in the power sector; (ii) strengthening the newly established regulatory bodies by pricing bulk supply and power transmission on a sound economic basis; and (iii) enhancing autonomy of Powergrid by assisting its transition from Government-guaranteed programs and funds to market-based ones. The physical scope of the Project comprises two components: Part A - Upgrading and expansion of 400kV, 220kV, and 132kV transmission systems to transfer additional power, to improve system reliability, and to enhance efficient utilization of power plants; and Part B - Establishing 400kV and 220 kV transmission systems to evacuate the power generated by the power stations of the central power utilities and independent power producers.
- Policy Dialogue
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Issues for Policy Dialogue (1) Sector Issues: (a) introduction of availability based tariff; (b) facilitating SEB reforms; (c) financial strengthening of transmission subsector; (2) Commercialization of Powergrid: (a) enhancement of autonomy; (b) commercial borrowings from international money markets; and (c) private sector participation in transmission subsector.
- Environment Category:
B
- Environment Impact and Mitigation
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POWERGRID has its Environmental and Social Policy and Procedures (ESPP), which were accepted by World Bank. The same policy and procedures will be applied for the proposed loan.
- Social Aspects and Remedies
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As this is a transmission project, the social impacts - land acquisition and involuntary resettlement - are minimal arising only for subprojects entailing construction of new substations.
POWERGRID has its Environmental and Social Policy and Procedures (ESPP), which were consistent with ADB's Policy on Involuntary Resettlement. The same policy and procedures will be applied for the proposed loan.
- Benefits and Beneficiaries
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The Project will enable (i) additional and more reliable power supply to all categories of customers; (ii) interchange of power between electricity regions in a more flexible and economic manner, with less environmental impact; (iii) decrease in costs of electricity through economic load dispatch; (iv) development of a regulatory framework for operating the national grid transmission system; and (v) facilitate state level power sector reform. The Project will benefit all classes of consumers who are currently affected by load restrictions, load shedding and power quality.
- Public Consultation
- Arranged by
- Date for Consultation :
- Groups Consulted :
- Beneficiary Participation in Formulation
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Beneficiary participation is being or will be done according to the above ESPP for each subproject
- Beneficiary Participation in Implementation
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Beneficiary participation is being or will be done according to the above ESPP for each subproject
- Consulting Services
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None.
- Procurement
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Procurement will be undertaken in accordance with the Bank's Guidelines for Procurement for tower materials, line materials, and substation equipment for 400 kV, 220 kV and 132 kV transmission systems.
- Contacts
- Bank
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S. Chander
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Deputy Director General
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OPSD
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Tel. No.:
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(632) 632-6979
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E-mail:
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schander@adb.org
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- Executing Agency
- Power Grid Corporation of India Limited
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Contact Person
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:
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Mr. S. Majumdar, General Manager, Corp. Planning
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Tel. No.
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Fax. No.
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91 -11 6560086
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- Remarks
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