India: National Grid Improvement Project

Sovereign Project | 44426-014

Summary

To optimize transnational power supply and promote country-wide power transfer in an efficient manner, the Government aims to integrate regional power grid network systems, which comprise five interconnected electrical regions including northern, north-eastern, eastern, western, and southern. Each electrical region attempts to connect and synchronize power system of neighboring states within the region, but interregional power transfer capacity has still been limited. Since natural energy resources are unevenly distributed and concentrated in certain locations, surplus power from some regions can be transferred to other regions in power deficit only when creating transmission super highways among the regions. While the existing interregional transmission capacity stands at 22,400 MW, the Government targets to increase this capacity to 27,950 MW by 2012, growing to 57,000 MW by 2015, and 75,000 MW by 2017 under the 12th Five Year Plan.

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Consulting Notices

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Procurement Notices

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Procurement Documents


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Project Name National Grid Improvement Project
Project Number 44426-014
Country India
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2787-IND: National Grid Improvement Project
Ordinary capital resources US$ 500.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector Energy - Electricity transmission and distribution
Gender Equity and Mainstreaming Some gender elements
Description To optimize transnational power supply and promote country-wide power transfer in an efficient manner, the Government aims to integrate regional power grid network systems, which comprise five interconnected electrical regions including northern, north-eastern, eastern, western, and southern. Each electrical region attempts to connect and synchronize power system of neighboring states within the region, but interregional power transfer capacity has still been limited. Since natural energy resources are unevenly distributed and concentrated in certain locations, surplus power from some regions can be transferred to other regions in power deficit only when creating transmission super highways among the regions. While the existing interregional transmission capacity stands at 22,400 MW, the Government targets to increase this capacity to 27,950 MW by 2012, growing to 57,000 MW by 2015, and 75,000 MW by 2017 under the 12th Five Year Plan. Such interregional transmission strengthening will create a backbone to sustain open power supply and investment in both generation and distribution.
Project Rationale and Linkage to Country/Regional Strategy

Power Grid Corporation of India, Limited (POWERGRID) plans to strengthen the interregional transmission connection between Chhattisgarh in the Western grid region and Haryana in the Northern grid region of India to support bulk power supply from private generation companies of 14 independent power producers (IPPs).

The Indian power sector has historically been characterized by energy shortage against growing electricity demand. During 2009-10, peak power deficit was estimated to be 12.7% and average energy deficit was 10.1%. The country is in chronic need of additional power supply and the power sector continues to be affected by the shortfall both on generation and transmission capacity. It is evident that the deficit in power availability is a significant impediment to the sustainable development of the country's economy. The capacity of the overall power supply system will need to be urgently increased commensurate with overall system efficiency improvements.

Impact Accelerated development of interregional grid system for increased power supply
Project Outcome
Description of Outcome Increased reliable power supply from private IPPs and public utilities within the interconnected grid network
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. Procurement, installation, and commissioning of strengthened interregional transmission network between the northern and western regions

2. Improvements to POWERGRID's corporate credit, access to nonsovereign borrowing, and risk management

Status of Implementation Progress (Outputs, Activities, and Issues) Original 17 contracts are already signed. Bidding for additional 14 contracts are ongoing.
Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer Hiroki Kobayashi
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Power Grid Corporation of India LimitedPGCIL@VSNL.COM.SAUDAMINI
Plot No. 2, Sector - 29
Gurgaon - 122 001 Haryana, India
Timetable
Concept Clearance 28 Apr 2011
Fact Finding 29 Apr 2011 to 13 May 2011
MRM 27 Jul 2011
Approval 30 Sep 2011
Last Review Mission -
Last PDS Update 25 Mar 2015

Loan 2787-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 Sep 2011 30 Mar 2012 22 Oct 2012 30 Jun 2017 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 2,000.10 Cumulative Contract Awards
ADB 500.00 30 Sep 2011 448.19 0.00 90%
Counterpart 1,500.10 Cumulative Disbursements
Cofinancing 0.00 30 Sep 2011 160.04 0.00 32%
Title Document Type Document Date
Guarantee Agreement for National Grid Improvement Project Guarantee Agreements Mar 2012
Loan Agreement for National Grid Improvement Project Loan Agreement (Ordinary Resources) Mar 2012
National Grid Improvement Project Summary Poverty Reduction and Social Strategies Sep 2011
National Grid Improvement Project Project/Program Administration Manual Sep 2011
National Grid Improvement Project Reports and Recommendations of the President Sep 2011
National Grid Improvement Project: Procurement Plan Procurement Plans Aug 2011
National Grid Improvement Project Design and Monitoring Frameworks Apr 2011

Evaluation Documents

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