India: National Power Grid Development Investment Program - Tranche 3

Sovereign Project | 39630-034 Status: Closed


ADB is helping India's national power grid operator expand transmission capacity and improve energy efficiency. The third tranche of the multitranche financing facility will improve the reliability of supply in the Western and Northern Regions by establishing new transmission and transformation capacity and increasing capacity of existing substations.

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Project Name National Power Grid Development Investment Program - Tranche 3
Project Number 39630-034
Country India
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2823-IND: National Power Grid Development Investment Program - Tranche 3
Ordinary capital resources US$ 51.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector

Energy - Electricity transmission and distribution

Gender Equity and Mainstreaming Some gender elements
Description A Framework Financing Agreement (FFA) for Multitranche Financing Facility (MFF) of the Investment Program was signed on 29 February 2008 among ADB, India, and Power Grid Corporation of India Limited (POWERGRID), the Borrower and EA. Subsequently, on 28 March 2008, ADB approved the MFF of an aggregate amount of $600 million to POWERGRID for the Investment Program. Initially, the scope of the program comprised of two projects; Project 1: Upgradation of Transmission Capacity for Evacuation of Power from Uttarakhand, and Project 2: 800 kV High Voltage Direct Current (HVDC) Northeastern Northern/Western Interconnector. However, due to the delay in commissioning of the associated hydropower generating facilities in Uttarakhand, POWERGRID decided to keep on hold the implementation of Project 1 until 2013. As a result, it was decided that all ADB facility of $600 million under the MFF will be utilized to fund Project 2: +800kV HVDC North East - Northern/Western Interconnector in two tranches. Loan Agreements for Tranche 1 (Loan No. 2415-IND: $400 million) and Tranche 2 (Loan No. 2510-IND: $ 200 million) were signed on 28 March 2008 and 27 March 2009, respectively. Current completion dates for Tranche 1 and Tranche 2 are 30 June 2013, and 30 June 2014, respectively. All contracts under Tranche 1 ($388 million approx.) and Tranche 2 ($119 million approx.) have been awarded in 2010. Based on the contract award, the loan savings of $76 million was confirmed. ADB received the Periodic Financing Request (PFR) for Tranche 3 for an amount of $76 million under the MFF on 21 June 2011 (Appendix 1). The investments under Tranche 3 will cover part of the POWERGRID investment plan under its Transmission Sector Road Map.
Project Rationale and Linkage to Country/Regional Strategy
Impact Strengthened National Power Grid.
Project Outcome
Description of Outcome Enhanced capacity and reliability of supply in the Western and Northern Regions
Progress Toward Outcome

Procurement has been completed, and implementation almost completed.

Sub-Project 1: Establishment of 400/220 kV GIS Substation at Kala along with 9.01 km line-in-line-out (LILO) of Vapi-Navi Mumbai 400 kV D/C line at Kala in the Union Territory of Dadra & Nagar Haveli. Subproject 1 has been commissioned in March 2014.

Sub-project 2: Establishment of 400/220 kV GIS sybstation at Magarwada along with 15 km LILO of 400kV D/C Navasari-Boisar line Magarwada GIS in UT . Sub-project 2 has been commissioned in November 2014.

Sub-project 3: Installation of 1x315MVA, 400/220kV Auto Transformer at Mapusa: Commissioned in October 2013.

Sub-project 4: Installation of 1x500MVA, 400/220kV auto transformer at Amritsar and 1x315MVA, 400/220kV Transformer at Abdullapur & Nalagarh Substations: at Abdullapur and Nalagarh substation - Commissioned in October 2013 and

at Amritsar substation - Commissioned in September 2013

Implementation Progress
Description of Project Outputs

New transmission and transformation capacity established in the UTs of D&NH and D&D.

Increased capacity of existing substations in the Western and Northern Regions.

Status of Implementation Progress (Outputs, Activities, and Issues)

All the three contracts have been awarded under this subproject. Physical progress achieved is 100% (Foundations - 30 out of 30 numbers; Tower erection - 30 out of 30; and stringing completed for 9 kms)

LILO of Vapi Navi Mumbai 400 kV D/C line at Kala substation: Line completed.

Kala substation: Commissioned in March 2014

All the four contracts have been awarded for this subproject. Physical progress achieved - Foundations and tower erections completed for all the 52 numbers of towers and stringing completed for 16 kms out of 16 kms.

LILO of 400kV D/C Navsari - Boisar line at Magarwada Commissioned on 2 November 2014

Installation of 1x315MVA transformer at Mapusa has been completed and commissioned in October 2013.

Installation of 1x500MVA, 400/220kV auto transformers at

Abdullapur and Nalagarh substations commissioned in October 2013; and at Amritsar substation commissioned in September 2013.

Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project is classified under environment category B. Initial environmental examinations were prepared in accordance with ADB's Safeguard Policy Statement, which are disclosed on ADB website. There are adequate budgetary provisions for implementation of the environment management plan (EMP). The EMP is part of the bidding documents, and the executing agency is supervising the EMP implementation.
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer K. Vallabha Rao
Responsible ADB Department South Asia Department
Responsible ADB Division India Resident Mission
Executing Agencies
Power Grid Corporation of India Limited
Plot No. 2, Sector - 29
Gurgaon - 122 001 Haryana, India
Concept Clearance -
Fact Finding -
Approval 07 Dec 2011
Last Review Mission -
Last PDS Update 09 Sep 2015

Loan 2823-IND

Approval Signing Date Effectivity Date Closing
Original Revised Actual
07 Dec 2011 30 Mar 2012 07 May 2012 31 Mar 2015 - 19 May 2015
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 51.00 Cumulative Contract Awards
ADB 51.00 07 Dec 2011 51.00 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 07 Dec 2011 51.00 0.00 100%

Safeguard Documents

See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Evaluation Documents

See also: Independent Evaluation

None currently available.

Related Publications

None currently available.

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