India: Madhya Pradesh Energy Efficiency Improvement Investment Program - Tranche 2

Sovereign Project | 43467-016

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 - Tranche 2
Project Number 43467-016
Country India
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2830-IND: Madhya Pradesh Energy Efficiency Improvement Investment Program - Tranche 2
Ordinary capital resources US$ 200.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change
Sector / Subsector Energy - Electricity transmission and distribution
Gender Equity and Mainstreaming Some gender elements
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 power for both agricultural pumps and other customers. This mixed rural distribution network faces several problems: the overuse of subsidized electricity for agricultural water pumping leaves households with an inadequate power supply, and the unauthorized use of electricity causes the DISCOMs to suffer financial losses. Aging and overloaded distribution lines and transformers result in excessive technical losses and poor quality power. To prevent the overuse of electricity by agricultural pumps and to reduce losses, the DISCOMs switch on the distribution lines serving the rural areas for a limited number of hours per day. The existing mixed-feeder system does not allow power to be supplied on a 24-hour basis to households and business establishments, constraining economic growth and development in rural areas.

To promote efficient use of groundwater in agriculture and improve on-farm water conservation practices, the DISCOMs supply 3-phase electricity in rural areas for 8 10 hours daily. However, this constraints economic activities and the constant (24-hour) supply of quality power to households. Attempted supply of one phase power, after 8 10-hour supply of three phase power, to reduce overuse of power by irrigation pumps by the DISCOMs was not effective. Separation of power supply lines (feeders) to agriculture and other customers is necessary to ensure the 24-hour supply of power to households. Additional measures such as installation of a HVDS and metering, together with better system management practices are necessary to reduce DISCOMs' technical and commercial losses.

Impact Improved operational efficiency of electricity distribution in rural areas of Madhya Pradesh
Project Outcome
Description of Outcome Efficient electricity distribution expanded in 15 project districts in Madhya Pradesh
Progress Toward Outcome Implementation is ongoing.
Implementation Progress
Description of Project Outputs

1. Separate feeders for agricultural pumps and households

2. Installed High Voltage Distribution Systems (HVDS)

3. Installed meters and improved supply quality

4. Strengthened 33 kV network

Status of Implementation Progress (Outputs, Activities, and Issues) All contracts have been awarded, implementation is ongoing.
Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Loan covenants relating to Environmental and Social Safeguards are being met by DISCOMs in implementing the project. The Environmental Monitoring reports submitted by DISCOMs have been uploaded in ADB website.
Involuntary Resettlement The distribution lines under tranche 2 will have no impact on land acquisition and resettlement.
Indigenous Peoples According to social assessments, no indigenous peoples are expected to be impacted.
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
Madhya Pradesh Poorv Kshetra Vidyut Vitaran Co LtdCMDEAST@HOTMAIL.COMBlock No. 7, Shakti Bhawan, Rampur
Jabalpur, Madhya Pradesh, India
M Pradesh Madhya Kshetra Vidyut Vitaran Co.Ltd.CMD@MPMKVVC.COMNishtha Parisar, Bijli Nagar Colony
Govindpura, Bophal, Madhya Pradesh
India
M Pradesh Paschim Kshetra Vidyut Vitaran Co. Ltd.CMDWZ.INDORE@GMAIL.COMGPH Campus, Pologround, Indore
Madhya Pradesh, India
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval 14 Dec 2011
Last Review Mission -
Last PDS Update 30 Mar 2015

Loan 2830-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Dec 2011 27 Feb 2012 09 May 2012 28 Feb 2015 28 Feb 2018 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 200.00 Cumulative Contract Awards
ADB 200.00 14 Dec 2011 169.03 0.00 85%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 14 Dec 2011 84.33 0.00 42%

Evaluation Documents

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