India: Madhya Pradesh Energy Efficiency Improvement Investment Program (Facility Concept)

Sovereign Project | 43467-014

Summary

Adequate and better quality power supply in rural Madhya Pradesh (MP), where 70% of the population lives, would spur economic growth and development. In order to ensure good quality, 24 hour power supply to rural households, Government of Madhya Pradesh (GoMP) has been undertaking a distribution improvement program (feeder separation program) with an approximate cost of $1100 million. The first phase of this program is already under implementation and the proposed Facility provides financial assistance to the investment program that constitutes the second phase. The investment program will install separate feeders for households and irrigation water pumps, install high voltage distribution systems (HVDS), provide new power connections, install meters, map the assets of the distribution companies and undertake network analysis to ensure better quality power supply to households and financial sustainability of the distribution companies.

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Project Name Madhya Pradesh Energy Efficiency Improvement Investment Program (Facility Concept)
Project Number 43467-014
Country India
Project Status Approved
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
MFF Facility Concept 0057-IND: Madhya Pradesh Energy Efficiency Improvement Investment Program (Facility Concept)
Ordinary capital resources US$ 400.00 million
TA 7831-IND: Enhancing Energy-Based Livelihoods for Women Micro-Entrepreneurs
Technical Assistance Special Fund US$ 1.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change
Sector / Subsector Energy - Electricity transmission and distribution
Gender Equity and Mainstreaming Effective gender mainstreaming
Description Adequate and better quality power supply in rural Madhya Pradesh (MP), where 70% of the population lives, would spur economic growth and development. In order to ensure good quality, 24 hour power supply to rural households, Government of Madhya Pradesh (GoMP) has been undertaking a distribution improvement program (feeder separation program) with an approximate cost of $1100 million. The first phase of this program is already under implementation and the proposed Facility provides financial assistance to the investment program that constitutes the second phase. The investment program will install separate feeders for households and irrigation water pumps, install high voltage distribution systems (HVDS), provide new power connections, install meters, map the assets of the distribution companies and undertake network analysis to ensure better quality power supply to households and financial sustainability of the distribution companies. Of the total of 50 districts of MP, the investment program covers 32 districts served by three distribution companies: Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company Limited (DISCOM-C); Madhya Pradesh Poorva Kshetra Vidyut Vitaran Company Limited (DISCOM-E); and Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Limited (DISCOM-W)
Project Rationale and Linkage to Country/Regional Strategy

At present, power supply lines in rural areas supply for both agricultural pumps and other customers. This mixed rural distribution network is faced with several problems, such as over-use of subsidized electricity for agricultural water pumping leaving inadequate power supply to households, and unauthorized use of electricity causing financial losses to the DISCOMs. Ageing and overloaded distribution lines and transformers, cause excessive technical losses and poor quality of supply. To prevent the over-use of electricity by agricultural pumps and to reduce losses, the DISCOMs switch-on the distribution lines serving the rural areas only for limited hours per day. The existing mixed-feeder system does not allow 24 hour supply of power to households and business establishments, which constrains the economic growth and development in rural areas.

To promote efficient use of ground water in agriculture and improve on-farm water conservation practices, the DISCOMs supply 8-10 hours electricity on three phases in rural areas. However, this constraints economic activities and supply of 24 hours quality power to households. As such, separation of power supply lines (feeders) to agriculture and other customers is necessary to ensure 24 hour supply of power to households. Additional measures such as installation of HVDS and metering together with better system management practices are necessary to reduce the technical and commercial losses to the DISCOMs.

Impact Continuous and higher quality supply of electricity to rural households in Madhya Pradesh
Project Outcome
Description of Outcome Improved operational efficiency of electricity distribution in rural areas of Madhya Pradesh
Progress Toward Outcome Implemention is ongoing.
Implementation Progress
Description of Project Outputs

1. Separated power supply to agricultural pumps and households and installed high-voltage distribution system (HVDS)

2. Improved upstream 33kV systems

3. Installed meters and new household connections

4. Access to business development services improved for microenterprises headed by women

5. Built capacity of women's self help groups to provide energy-related microenterprise development services and gender sensitive user awareness and energy conservation

Status of Implementation Progress (Outputs, Activities, and Issues) Implementation ongoing. MFF extended from 28 February 2015 to 28 February 2018.
Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects Category B
Involuntary Resettlement Category B
Indigenous Peoples Category C
Stakeholder Communication, Participation, and Consultation
During Project Design During Project preparation, consultations were held with the concerned Government officials. Additionally, consultations were also carried out with the affected persons in the project area and with the local community.
During Project Implementation Public consultation with all stakeholders will continue throughout implementation of the project.
Responsible ADB Officer Jyotirmoy Banerjee
Responsible ADB Department South Asia Department
Responsible ADB Division India Resident Mission
Executing Agencies
M Pradesh Madhya Kshetra Vidyut Vitaran Co.Ltd.Nishtha Parisar, Bijli Nagar Colony
Govindpura, Bophal, Madhya Pradesh
India
M Pradesh Paschim Kshetra Vidyut Vitaran Co. Ltd.GPH Campus, Pologround, Indore
Madhya Pradesh, India
Madhya Pradesh Poorv Kshetra Vidyut Vitaran Co LtdBlock No. 7, Shakti Bhawan, Rampur
Jabalpur, Madhya Pradesh, India
Energy DepartmentVallabh Bhawan, Bhopal (M.P.) 462 004
India
Timetable
Concept Clearance 18 Nov 2010
Fact Finding 21 Mar 2011 to 01 Apr 2011
MRM 28 Apr 2011
Approval 07 Jul 2011
Last Review Mission -
Last PDS Update 10 Mar 2015

MFF Facility Concept 0057-IND

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 556.00 Cumulative Contract Awards
ADB 400.00 - 0.00 0.00 %
Counterpart 156.00 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

TA 7831-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
07 Jul 2011 07 Dec 2011 07 Dec 2011 31 Oct 2014 31 Dec 2015 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,000,000.00 0.00 0.00 0.00 0.00 0.00 1,000,000.00 07 Jul 2011 565,895.65

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Madhya Pradesh Energy Efficiency Improvement Investment Program Environmental Assessment and Review Framework Jun 2011
Madhya Pradesh Energy Efficiency Improvement Investment Program Indigenous Peoples Planning Frameworks/Indigenous Peoples Development Frameworks Jun 2011
Madhya Pradesh Energy Efficiency Improvement Investment Program: Resettlement Framework Resettlement Frameworks Jun 2011
Madhya Pradesh Energy Efficiency Improvement Investment Program (Facility Concept): Indigenous Peoples Planning Framework (as of Board approval) Indigenous Peoples Planning Frameworks/Indigenous Peoples Development Frameworks Apr 2011

Evaluation Documents

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