ADB is helping upgrade and expand the transmission and distribution of electricity in India’s Madhya Pradesh to meet growing demand for energy in the state. The project will fund about 1,800 circuit kilometers of transmission lines and more than 3,100 circuit kilometers of distribution lines, and construct or upgrade substations. It will also build institutional capacity.
|Project Name||Madhya Pradesh Power Transmission and Distribution System Improvement Project|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Governance and capacity development
|Sector / Subsector||
Energy / Electricity transmission and distribution
|Gender Equity and Mainstreaming||No gender elements|
Madhya Pradesh power transmission and distribution system served a peak demand of 8,505 megawatt (MW) and delivered 41,392 gigawatt hours (GWh) in 2012. However, the estimated peak demand was 9,151 MW, resulting in an unmet energy demand of 8,393 GWh (20% of the requirement). 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. New power connections are provided to households under a number of programs, and consumption per customer is also expected to increase in the face of robust economic growth in the state. Therefore, the demand for electricity is expected to increase and meeting this growing demand requires upgrading and expansion of the transmission and distribution network in the state.
Quality of power supply and reliability of service in MP used to be substantially below the standards expected of a modern public electricity network. The Asian Development Bank (ADB), other development partners, and the government undertook a series of investments for expansion, upgrading and reconfiguration of the transmission and distribution networks since 2001. The ADB alone has approved about $1.37 billion worth of investment projects since 2001, mainly for transmission and distribution improvements. The government's own programs includes: (i) Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) program for rural electrification; (ii) the Restructured Accelerated Power Development Reforms Program (R-APDRP), to improve electricity distribution infrastructure in urban areas; and (iii) Feeder Separation Program to limit agricultural supply to 8 hours and to provide rural households with 24-hour power supply. While the RGGVY and R-APDRP programs are nearing their completion, the feeder separation program is half way through its implementation.
|Project Rationale and Linkage to Country/Regional Strategy||The proposed project undertakes transmission and distribution improvements, critical for meeting the growing demand for power in Madhya Pradesh (MP) in India. As a follow up to the previous investments in MP, the project will undertake selected 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||Adequate and reliable power supply in Madhya Pradesh|
|Description of Outcome||Increased capacity and operational efficiency in the electricity transmission and distribution system in Madhya Pradesh|
|Progress Toward Outcome||Implementation is ongoing.|
|Description of Project Outputs||
1. Transmission system upgraded and expanded
2. Distribution system upgraded and expanded
3. Built capacity of executing agency staff
4. Project management system in place
|Status of Implementation Progress (Outputs, Activities, and Issues)||All contracts have been awarded, implementation is ongoing.|
|Geographical Location||Madhya Pradesh|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||The initial environmental examination report was disclosed on the ADB website. Consultants for preparing Social and Environmental Monitoring Report have been recruited by executing agencies. The Environmental Monitoring reports submitted by EAs have been uploaded on ADB website.|
|Involuntary Resettlement||The resettlement plan was disclosed on the ADB website.|
|Indigenous Peoples||Compliance is in line with policies and procedures.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||During Project preparation, consultations were held.|
|During Project Implementation||Compliance is in line with policies and procedures.|
|Consulting Services||Consultant requirements are covered under the PPTA for Madhya Pradesh Transmission and Distribution System Improvement Project with a total cost of $750,000. Total consultant requirement is 39 months of which 21 person-months are international.|
|Procurement||All procurement of goods and works shall be undertaken in accordance with ADB's Procurement Guidelines. International competitive bidding procedures shall be followed for all the packages.|
|Responsible ADB Officer||Banerjee, Jyotirmoy|
|Responsible ADB Department||South Asia Department|
|Responsible ADB Division||India Resident Mission|
M Pradesh Madhya Kshetra Vidyut Vitaran Co.Ltd.
Nishtha Parisar, Govindpura, Bhopal
Madhya Pradesh, 461 023, India M Pradesh Paschim Kshetra Vidyut Vitaran Co. Ltd.
Indore, Madhya Pradesh
India Madhya Pradesh Poorv Kshetra Vidyut Vitaran Co Ltd
Block No. 7, Shakti Bhawan, Vidyut Nagar
Jabalpur, Madhya Pradesh 482 008 India Madhya Pradesh Power Transmission Company Limited
Madhya Pradesh Ministry of Finance (Aid Accounts & Audit Division)
5th Floor, B Wing, Janpath Bhawan
Janpath, New Delhi 110 001
|Concept Clearance||29 May 2013|
|Fact Finding||05 Aug 2013 to 16 Aug 2013|
|MRM||05 Sep 2013|
|Approval||27 Nov 2013|
|Last Review Mission||-|
|Last PDS Update||26 Sep 2017|
|Approval||Signing Date||Effectivity Date||Closing|
|27 Nov 2013||17 Feb 2014||21 Mar 2014||31 Dec 2018||-||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||500.00||Cumulative Contract Awards|
|ADB||350.00||27 Nov 2013||334.74||0.00||96%|
|Cofinancing||0.00||27 Nov 2013||124.81||0.00||36%|
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Evaluation Documents See also: Independent Evaluation
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No contracts awarded for this project were found
|Title||Document Type||Document Date|
|Madhya Pradesh Power Transmission and Distribution System Improvement Project||Procurement Plans||Jul 2014|