India: Madhya Pradesh Power Transmission and Distribution System Improvement Project

Sovereign Project | 47100-001

Summary

Madhya Pradesh power transmission and distribution system encountered a peak demand of 8,505 megawatt (MW) and served 41,392 gigawatt/hour (GWh) resulting in an unmet peak demand of 8,393 MW (17%) in 2012. Forecast sales to all customers in 2013-2014 is about 43,000 GWh, (about 600 kWh per person) and sales are expected to increase by an average of 7% per year in the 12th five-year plan period (2012-2017). There are 8.21 million electricity customers in the state, of which 6.1 million were household customers with a legal power connection, representing about 60% of all households. The increasing new connections to households, increased consumption from existing customers, and the economic growth of the state, are expected to increase the demand for electricity. Meeting this growing demand requires upgrading and expansion of the transmission and distribution network in the state.

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Project Name Madhya Pradesh Power Transmission and Distribution System Improvement Project
Project Number 47100-001
Country India
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8374-IND: Preparing the Madhya Pradesh Power Transmission & Distribution System Improvement Project
Technical Assistance Special Fund US$ 750,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change
Sector / Subsector Energy - Electricity transmission and distribution
Gender Equity and Mainstreaming No gender elements
Description

Madhya Pradesh power transmission and distribution system encountered a peak demand of 8,505 megawatt (MW) and served 41,392 gigawatt/hour (GWh) resulting in an unmet peak demand of 8,393 MW (17%) in 2012. Forecast sales to all customers in 2013-2014 is about 43,000 GWh, (about 600 kWh per person) and sales are expected to increase by an average of 7% per year in the 12th five-year plan period (2012-2017). There are 8.21 million electricity customers in the state, of which 6.1 million were household customers with a legal power connection, representing about 60% of all households. The increasing new connections to households, increased consumption from existing customers, and the economic growth of the state, are expected to increase the demand for electricity. Meeting this growing demand requires upgrading and expansion of the transmission and distribution network in the state.

Quality of power and reliability of service in MP are substantially below the standards expected of a modern public electricity network, and require improvement, with investments on upgrades and reconfiguration of the medium and low voltage distribution networks. The gap between supply and demand continues to be a concern, requiring load shedding throughout the year, which is likely to continue for a few years to come. The network losses are high, especially in rural areas where distribution lines are overloaded. Un-metered connections and theft have caused the rural area losses to be about 46% in 2011. Subsidized electricity served to agricultural water pumping requires rationing to minimize financial losses to distribution companies.

Project Rationale and Linkage to Country/Regional Strategy The proposed project undertakes transmission and distribution improvements in Madhya Pradesh (MP) in India, critical for meeting the growing demand for power in the state. As a follow up to the previous investments in MP, the project will undertake selective transmission system improvement, distribution system improvement and capacity building. The main objectives of the project are to provide adequate transmission and distribution capacity to supply growing power demand and reduce the system losses to ensure financial sustainability of the MP power distribution companies.
Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Stakeholder participation and consultation were conducted during PPTA project design.
During Project Implementation Regular communication via fax and/or email was conducted with the the EA and IA.
Business Opportunities
Consulting Services

A total of 39 person months of consultancy services will be engaged as individual consultants to prepare the project. Disbursement under the TA will be done in accordance with ADB's Technical Assistant Handbook (May 2010, as amended).

Department of Energy, government of MP will be the executing and the implementing agency of the PPTA. Department of Energy will provide in-kind contributions in the form of office space for the consultants, allocating counterpart staff, and other in kind support.

Responsible ADB Officer Herath M. Gunatilake
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Dept of Energy, Govt of Madhya PradeshMantralaya
Vallabh Bhawan
Bhopal 462 004
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval 30 May 2013
Last Review Mission -
Last PDS Update 29 Sep 2014

TA 8374-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 May 2013 12 Jul 2013 12 Jul 2013 31 Dec 2014 30 Sep 2015 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
750,000.00 0.00 0.00 0.00 0.00 0.00 750,000.00 30 May 2013 520,122.78

Safeguard Documents

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Evaluation Documents

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