India: Bihar Power System Improvement Project

Sovereign Project | 41626-013 Status: Approved


ADB is supporting electricity system upgrades in Bihar, one of India’s poorest and most populous states. The project will install transmission lines and renovate and modernize transmission and distribution facilities to improve the quality and reliability of the state's electricity supply network. Improvements in distribution will benefit seven towns, while transmission upgrades will span a broader area.

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Project Name Bihar Power System Improvement Project
Project Number 41626-013
Country India
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2681-IND: Bihar Power System Improvement Project
Ordinary capital resources US$ 132.20 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Energy - Electricity transmission and distribution

Gender Equity and Mainstreaming No gender elements
Description The project will upgrade the electric power system, increase efficiency, reliability and quality of supply through physical investments in the power infrastructure of the state of Bihar, coupled with a capacity development component. Project investments include installation of new, and renovation and modernization (R&M) of existing transmission substations; installation of new, and reinforcement of existing transmission lines; and improving of distribution systems in seven towns (Bihar Sharif, Motihari, Bettiah, Samastipur, Begusarai, Ara and Buxor) in Bihar.
Project Rationale and Linkage to Country/Regional Strategy Bihar's power sector is in need of investment. Insufficient capacity of its transmission network affects reliability, quality, and stability of power supply. Bihar's electricity distribution network has failed to keep pace with the demand growth. Power transformer capacity is inadequate to meet demand on 11 kilovolt (kV) feeders in many areas, 33 kV and 11 kV feeders are being loaded above thermal limits, and failure rates for distribution transformers are about 19%. Undersized conductors, long low-voltage circuits, and overloaded distribution transformers further impair quality of supply. Overall, system losses exceed 40%. This is a considerable drag on sector finances and sustainability. There is, thus, a need to upgrade the transmission and distribution system in Bihar, and the Project helps address this need. The Project is in line with the government's strategy, and with ADB's Country Partnership Strategy (CPS) for India.
Impact A more sustainable state power sector providing better services to end users
Project Outcome
Description of Outcome Improved and expanded transmission and distribution (T&D) capacity, increased T&D system efficiency, and enhanced quality and reliability of service in Bihar.
Progress Toward Outcome Project implementation activities are on-going.
Implementation Progress
Description of Project Outputs

1. Transmission expansion:

a. Expansion of transmission substation capacity

b. Construction of new transmission lines.

2. Distribution rehabilitation and expansion:

a. Increased distribution system capacity in the 7 towns in Bihar (via installation and R&M of distribution substations and distribution transformers)

b. Increased distribution line capacity (via re-conductoring of over-loaded 33 kV and 11 kV lines and installation new lines)

c. Increased consumer metering.

3. Non-Physical Investments

a. Project implementation support

b. Institutional and/or capacity development of BSEB

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

1. Transmission expansion:

All contracts for grid substations and associated bays have been awarded and the works are under advanced stages of implementation.

All contracts for transmission lines (TL) have been awarded and works for 220kV and 132kV TL are ongoing.

2. Distribution rehabilitation and expansion:

All contracts for distribution works have been awarded and implementation is ongoing.

3. Non -Physical Investments:

Under capacity development component, EA has initiated training activities.

Geographical Location Bihar, India
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 (2009), 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 The project is classified under involuntary resettlement category B. Resettlement plan (RP) was prepared in accordance with ADB's Safeguard Policy Statement, which is disclosed on ADB website. The executing agency is supervising the RP implementation.
Indigenous Peoples The project is classified under indigenous people's category C.
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services TBD
Procurement TBD
Responsible ADB Officer Vallabha Karbar
Responsible ADB Department South Asia Department
Responsible ADB Division India Resident Mission
Executing Agencies
Bihar State Electricity Board_(BSEB)
Vidyut Bhawan, Bailey Road
Patna-800 021
Bihar, India
Concept Clearance 26 Apr 2010
Fact Finding 17 Jun 2010 to 25 Jun 2010
MRM 10 Aug 2010
Approval 19 Oct 2010
Last Review Mission -
PDS Creation Date 16 Nov 2007
Last PDS Update 22 Sep 2015

Loan 2681-IND

Approval Signing Date Effectivity Date Closing
Original Revised Actual
19 Oct 2010 15 Jun 2011 21 Oct 2011 30 Jun 2016 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 153.90 Cumulative Contract Awards
ADB 132.20 19 Oct 2010 60.38 0.00 46%
Counterpart 21.70 Cumulative Disbursements
Cofinancing 0.00 19 Oct 2010 43.77 0.00 33%

Safeguard Documents

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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

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None currently available.

Related Publications

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