| Project Name | Madhya Pradesh Energy Efficiency Improvement Investment Program - Tranche 2 | ||||
| Project Number | 43467-016 | ||||
| Country / Economy | India |
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| Project Status | Closed | ||||
| Project Type / Modality of Assistance | Loan |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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| Drivers of Change | Gender Equity and Mainstreaming |
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| Sector / Subsector | Energy / Electricity transmission and distribution |
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| Gender | Some gender elements | ||||
| Description | Adequate and better quality power supply in rural Madhya Pradesh (MP), where 70% of the population lives, would spur economic growth and development. In order to ensure good quality, 24 hour power supply to rural households, Government of Madhya Pradesh (GoMP) has been undertaking a distribution improvement program (feeder separation program) with an approximate cost of $1100 million. The first phase of this program is already under implementation and the proposed Facility provides financial assistance to the investment program that constitutes the second phase. The investment program will install separate feeders_for households and irrigation water pumps, install high voltage distribution systems (HVDS), provide new power connections, install meters, map the assets of the distribution companies and undertake network analysis to ensure better quality power supply to households and financial sustainability of the distribution companies._Of the total of 50 districts of MP, the investment program covers 32 districts served by three distribution companies: Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company Limited (DISCOM-C); Madhya Pradesh Poorva Kshetra Vidyut Vitaran Company Limited (DISCOM-E); and Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Limited (DISCOM-W). | ||||
| Project Rationale and Linkage to Country/Regional Strategy | At present, power supply lines in rural areas supply power for both agricultural pumps and other customers. This mixed rural distribution network faces several problems: the overuse of subsidized electricity for agricultural water pumping leaves households with an inadequate power supply, and the unauthorized use of electricity causes the DISCOMs to suffer financial losses. Aging and overloaded distribution lines and transformers result in excessive technical losses and poor quality power. To prevent the overuse of electricity by agricultural pumps and to reduce losses, the DISCOMs switch on the distribution lines serving the rural areas for a limited number of hours per day. The existing mixed-feeder system does not allow power to be supplied on a 24-hour basis to households and business establishments, constraining economic growth and development in rural areas. To promote efficient use of groundwater in agriculture and improve on-farm water conservation practices, the DISCOMs supply 3-phase electricity in rural areas for 810 hours daily. However, this constraints economic activities and the constant (24-hour) supply of quality power to households. Attempted supply of one phase power, after 810-hour supply of three phase power, to reduce overuse of power by irrigation pumps by the DISCOMs was not effective. Separation of power supply lines (feeders) to agriculture and other customers is necessary to ensure the 24-hour supply of power to households. Additional measuressuch as installation of a HVDS and metering, together with better system management practicesare necessary to reduce DISCOMs' technical and commercial losses. |
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| Impact | Improved operational efficiency of electricity distribution in rural areas of Madhya Pradesh. |
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| Project Outcome | |
|---|---|
| Description of Outcome | Efficient electricity distribution expanded in 15 project districts in Madhya Pradesh. |
| Progress Toward Outcome | Efficient electricity distribution expanded. |
| Implementation Progress | |
| Description of Project Outputs | 1. Separate feeders for agricultural pumps and households 2. Installed High Voltage Distribution Systems (HVDS) 3. Installed meters_and improved supply quality 4. Strengthened 33 kV network |
| Status of Implementation Progress (Outputs, Activities, and Issues) | Project is completed. Outputs are achieved. |
| Geographical Location | Barwani, Bhind, Burhanpur, Chhindwara, Damoh, Datia, Dewas, Dhar, East Nimar, Gwalior, Indore, Jhabua, Khargone, Mandsaur, Morena, Narsimhapur, Neemuch, Panna, Ratlam, Seoni, Shajapur, Sheopur, Tikamgarh, Ujjain |
| Safeguard Categories | |
|---|---|
| Environment | B |
| Involuntary Resettlement | B |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | The Environmental Monitoring reports submitted by DISCOMs have been uploaded in ADB website. |
| Involuntary Resettlement | Compliance is in line with policies and procedures. |
| 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. |
| Business Opportunities | |
|---|---|
| Consulting Services | All consultancy services to be financed under the MFF will be selected and engaged in accordance with ADB's Guidelines on the Use of Consultants (2010, as amended from time to tome). |
| Procurement | All works and goods to be financed under the MFF will be procured in accordance with ADB's Procurement Guidelines (2010, as amended from time to time). |
| Responsible ADB Officer | Banerjee, Jyotirmoy |
| Responsible ADB Department | South Asia Department |
| Responsible ADB Division | India Resident Mission |
| Executing Agencies |
Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company Limited Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Limited Madhya Pradesh Poorv Kshetra Vidyut Vitaran Co Ltd |
| Timetable | |
|---|---|
| Concept Clearance | - |
| Fact Finding | - |
| MRM | - |
| Approval | 14 Dec 2011 |
| Last Review Mission | - |
| Last PDS Update | 13 Mar 2020 |
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 14 Dec 2011 | 27 Feb 2012 | 09 May 2012 | 28 Feb 2015 | 28 Feb 2020 | 28 Oct 2020 |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 200.00 | Cumulative Contract Awards | |||
| ADB | 200.00 | 09 Sep 2022 | 149.01 | 0.00 | 100% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 09 Sep 2022 | 149.01 | 0.00 | 100% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | - | Satisfactory | Satisfactory | Satisfactory | - | Satisfactory |
| Project Page | https://www.adb.org//projects/43467-016/main |
| Request for Information | http://www.adb.org/forms/request-information-form?subject=43467-016 |
| Date Generated | 05 June 2023 |