India: Green Energy Corridor and Grid Strengthening Project

Sovereign Project | 44426-016 Status: Approved

Summary

The project will fund electric transmission system investments in India, including (i) a portion of the Government of India's " Green Energy Corridor" initiative to facilitate the transfer of power from the renewable energy (RE) rich areas to other parts of the country, consisting of 765 kilovolt (kV) and 400 kV high voltage transmission lines and an associated 765/400kV substation and associated equipment, and (ii) four high voltage direct current (HVDC) terminals (two at 800 kV and two at 320 kV) as part of increased inter-regional connectivity between India's western and southern regional power grids.

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Procurement Documents


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Project Name Green Energy Corridor and Grid Strengthening Project
Project Number 44426-016
Country India
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3365-IND: Green Energy Corridor and Grid Strengthening Project
Ordinary capital resources US$ 500.00 million
Loan: Green Energy Corridor and Grid Strengthening Project
KfW Bankengruppe US$ 625.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Energy - Electricity transmission and distribution

Gender Equity and Mainstreaming No gender elements
Description

The project will fund electric transmission system investments in India, including (i) a portion of the Government of India's " Green Energy Corridor" initiative to facilitate the transfer of power from the renewable energy (RE) rich areas to other parts of the country, consisting of 765 kilovolt (kV) and 400 kV high voltage transmission lines and an associated 765/400kV substation and associated equipment, and (ii) four high voltage direct current (HVDC) terminals (two at 800 kV and two at 320 kV) as part of increased inter-regional connectivity between India's western and southern regional power grids.

India's Ministry of New and Renewable Energy and the Forum of Regulators commissioned Power Grid Corporation of India Ltd. (Powergrid) to conduct a Green Energy Corridor study to identify requisite nationwide transmission investments required to accommodate the anticipated additional renewable energy generation capacity targeted during India's 12th Five Year Plan (2013-2017) and beyond. Powergrid is the public sector corporation that is mainly responsible for construction, expansion, operations and maintenance of India's inter-state and inter-regional power transmission network. In order to facilitate transfer of renewable energy from the renewable energy rich states to other states, as well as absorption and smoothing out of the intermittency from such power sources, Powergrid has identified requisite investments in a phased approach to commence during the 12th Five Year Plan.

Powergrid also conducted the studies for the proposed HVDC transmission link to further increase inter-regional transmission capacity between the western and the southern regional grids.

Project Rationale and Linkage to Country/Regional Strategy The project consists of electric transmission system investments in India to facilitate the transfer of renewable energy, as well as increasing interregional connectivity. The total project cost is about $2.5 billion, for which ADB would provide a $500 million sovereign guaranteed project loan. Investments will include transmission lines and substations. This project is a subset of India's 'green energy corridor' initiative to ensure that transmission system development is commensurate with renewable energy capacity development over time. The project will also incorporate increasing interregional transmission capacity between the southern and western regional systems via an 800 k V HVDC link. The proposed project will thus improve interstate power flows and system reliability.
Impact Increased overall efficiency of the Indian power system, expanded access to electricity, increased private investment in renewable energy, and enhanced energy security in India. (Electricity for All, Twelfth Five Year Plan)

Project Outcome

Description of Outcome Improved and more reliable transmission system capacity in selected regions of India
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. Green energy corridor transmission system expanded in the northern region

2. Transmission interconnection capacity between the western and southern regional grids expanded

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

Safeguard Categories

Environment B
Involuntary Resettlement B
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects Effective measures to avoid, minimize, mitigate, and compensate for the adverse environmental impacts are incorporated in the initial environmental examination, which includes the environmental management plan. Environmental impacts of transmission lines are mostly localized to the right-of-way and can be minimized by careful route selection.
Involuntary Resettlement For the transmission towers and lines, impacts are temporary and will occur during construction in terms of loss of crops and trees which will be compensated. Effective measures to avoid, minimize, mitigate, and compensate for the adverse impacts are incorporated in the relevant documents.
Indigenous Peoples Category C
Stakeholder Communication, Participation, and Consultation
During Project Design Project was cleared by Government of India for Asian Development Bank to undertake due diligence after inter-ministry consultations in 2014. Powergrid has conducted public consultations in applicable project areas and consulted with other stakeholders.
During Project Implementation Stakeholder consultation is an ongoing process and will continue during project implementation.

Business Opportunities

Consulting Services Project implementation consultants are not envisaged.
Procurement Powergrid is the executing and implementing agency. A project management unit is in place, headed by a project director. Goods, equipment and civil works to be financed by the ADB loan will be procured in accordance with ADB Procurement Guidelines (2015, as amended from time to time). International competitive bidding (ICB) will be used for civil works and turnkey contracts. Advanced contracting and/or retroactive financing are envisaged.

Responsible Staff

Responsible ADB Officer Kazuhiro Enomoto
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Power Grid Corporation of India Limited
PGCIL@VSNL.COM.
SAUDAMANI
Plot No. 2, Sector - 29
Gurgaon - 122 001 Haryana, India

Timetable

Concept Clearance -
Fact Finding 01 Jun 2015 to 11 Jun 2015
MRM 22 Sep 2015
Approval 09 Dec 2015
Last Review Mission -
Last PDS Update 10 Mar 2016

Loan 3365-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
09 Dec 2015 - - 30 Jun 2021 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 2,581.30 Cumulative Contract Awards
ADB 500.00 09 Dec 2015 0.00 0.00 0%
Counterpart 2,081.30 Cumulative Disbursements
Cofinancing 0.00 09 Dec 2015 0.00 0.00 0%

Safeguard Documents See also: Safeguards

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 See also: Independent Evaluation

None currently available.

Related Publications

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