India: Power Grid Transmission (Sector) Project | Asian Development Bank

India: Power Grid Transmission (Sector) Project

Evaluation Document | 16 October 2018

The government of India in 2004—the year of loan appraisal—set the target of installing an additional 100 gigawatts (GW) of generating capacity to provide access to electricity for all households by 2012. At that time, India was experiencing load shedding and quality problems because of the limited power transmission capacity. In 2012, the government approved the National Transmission Development Plan (NTDP) with required investments amounting to $12.6 billion. The plan aimed to alleviate existing transmission shortages and deploy additional generation capacity.

The Asian Development Bank (ADB) approved the $400 million loan in 2004 for the Power Grid Transmission (Sector) Project to support the implementation of the NTDP. This loan, in accordance with ADB’s country strategy and program for India, financed the procurement and construction of transmission infrastructure. It also helped the Power Grid Corporation of India Limited (POWERGRID) strengthen and develop India’s national transmission grid. POWERGRID also cofinanced the project. These improvements in the power sector would promote increased private sector participation through open access to the national transmission grid. The private sector though has been cautious in investing in transmission because of the weak regulatory framework.

This report validates the completion report of the project. IED overall assessment: Successful