India: IND: NTPC CAPACITY EXPANSION FINANCING FACILITY

Nonsovereign Project | 39916-014

Summary

This is a direct non-sovereign loan to NTPC Limited (formerly known as the National Thermal Power Corporation), majority state-owned by the Government of India. As the largest power generator in India, NTPC's operations and expansion plans are critical to reducing peak power demand and energy deficits that are forecast persist for at least several more years. NTPC is a financially sound enterprise with a strong balance sheet, an effective governance structure and experienced management. Although an SOE, NTPC is operated as an independent commercial entity.

Latest Project Documents

Consulting Notices

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No notices are currently available for this project.

Project Results

 

4,480

MW installed energy generation capacity using conventional and renewable energy sources


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Project Name IND: NTPC CAPACITY EXPANSION FINANCING FACILITY
Project Number 39916-014
Borrower/Company NTPC LIMITED
Country India
Location India
Approval Number 7242/42, 7242/2249
Type or Modality of Assistance
7242/2249 Loan USD 75.00 million Committed
Strategic Agendas
Drivers of Change
Sector / Subsector Energy - Conventional energy generation
Gender Equity and Mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Shinya Kondo
Project Sponsor(s) National Thermal Power Corp.
Description This is a direct non-sovereign loan to NTPC Limited (formerly known as the National Thermal Power Corporation), majority state-owned by the Government of India. As the largest power generator in India, NTPC's operations and expansion plans are critical to reducing peak power demand and energy deficits that are forecast persist for at least several more years. NTPC is a financially sound enterprise with a strong balance sheet, an effective governance structure and experienced management. Although an SOE, NTPC is operated as an independent commercial entity.
Objectives and Scope The loan will finance a portion of NTPC's capacity expansion program under the 10th Plan. The eligible projects to be partially financed from ADB's loan are (i) the 2,980 MW Sipat Super Thermal Power Project (Stages 1 and 2) in Chhattisgarh state and (ii) the Kahalgaon Super Thermal Power Project Stage II extension (1,500 MW) in Bihar state.
Linkage to Country/Regional Strategy ADB's Country Strategy and Program Update (CSPU) for India (2006-2008) confirms ADB''s support for the power sector in India, specifically through national-level interventions and development of more efficient, low-carbon power generation through agencies such as NTPC. The financing supports the focus on strengthening good governance in public sector organizations to optimize the development impact of physical investments. The CSPU currently being prepared underscores the need for ADB to focus its assistance on the Navratna companies.
Status of Development Objectives With the commissioning and full operation of all units in Sipat and Kahalgaon, NTPC has added 4,480 MW to its installed capacity, and has contributed to reducing the energy deficit in India.
Safeguard Categories
Environment FI
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

NTPC's corporate environmental policy and environmental management system (EPEMS) has been reviewed. The EPEMS provides the overall framework for environmental management in accordance with ADB's requirements.

Notwithstanding the corporate loan classification, two Projects to be funded from the loan have each been classified as Category A. The environmental impact assessment for each Project has been prepared and reviewed, site visits undertaken and a summary (SEIA) of both projects circulated to ADB''s Board and posted on ADB's website on 29 March 2006.

Involuntary Resettlement Category C has been provided for both Projects in compliance with ADB''s policies on resettlement aspect, in view of the fact that resettlement and land acquisition has already been satisfactorily completed in each location. The satisfactory completion of land acquisition and compensatory payments was verified by NTPC and the relevant district authorities.
Indigenous Peoples Category C has been provided for both Projects in compliance with ADB''s policies on indigenous peoples aspect.
Stakeholder Communication, Participation, and Consultation Consultations were appropriately carried out at the time of land acquisition.
Timetable for assistance design, processing and implementation
Concept Clearance 07 Jul 2005
Due Diligence 30 Apr 2006
Credit Committee Meeting 05 Jun 2006
Approval 27 Jul 2006
PDS Creation Date 06 Apr 2006
Last PDS Update 29 Sep 2014
Title Document Type Document Date
NTPC Capacity Expansion Financing Facility Extended Annual Review Reports Oct 2013
NTPC Capacity Expansion Financing Facility Reports and Recommendations of the President Jun 2006

Evaluation Documents

See also: Independent Evaluation

No documents found.


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