This is a direct non-sovereign loan to NTPC Limited (formerly known as the National Thermal Power Corporation), majority state-owned by the Government of India. As the largest power generator in India, NTPC's operations and expansion plans are critical to reducing peak power demand and energy deficits that are forecast persist for at least several more years. NTPC is a financially sound enterprise with a strong balance sheet, an effective governance structure and experienced management. Although an SOE, NTPC is operated as an independent commercial entity.
Project Results
-
4,480
MW installed energy generation capacity using conventional and renewable energy sources
The results data reported above are limited to ADB's core sectors, as defined under Strategy 2020 and tracked through indicators in the ADB Results Framework. For definitions of results indicators, please see the ADB Results Framework Indicators Definition.
Project Name | IND: NTPC CAPACITY EXPANSION FINANCING FACILITY | ||||||||||
Project Number | 39916-014 | ||||||||||
Borrower/Company | NTPC LIMITED |
||||||||||
Country | India |
||||||||||
Location | |||||||||||
Type or Modality of Assistance |
|
||||||||||
Strategic Agendas | Environmentally sustainable growth |
||||||||||
Drivers of Change | Private sector development |
||||||||||
Sector / Subsector | Energy / Conventional energy generation |
||||||||||
Gender Equity and Mainstreaming | |||||||||||
Responsible ADB Department | Private Sector Operations Department | ||||||||||
Responsible ADB Division | Portfolio Management Division, PSOD | ||||||||||
Responsible ADB Officer | Kondo, Shinya | ||||||||||
Project Sponsor(s) | |||||||||||
Description | This is a direct non-sovereign loan to NTPC Limited (formerly known as the National Thermal Power Corporation), majority state-owned by the Government of India. As the largest power generator in India, NTPC's operations and expansion plans are critical to reducing peak power demand and energy deficits that are forecast persist for at least several more years. NTPC is a financially sound enterprise with a strong balance sheet, an effective governance structure and experienced management. Although an SOE, NTPC is operated as an independent commercial entity. | ||||||||||
Objectives and Scope | The loan will finance a portion of NTPC's capacity expansion program under the 10th Plan. The eligible projects to be partially financed from ADB's loan are (i) the 2,980 MW Sipat Super Thermal Power Project (Stages 1 and 2) in Chhattisgarh state and (ii) the Kahalgaon Super Thermal Power Project Stage II extension (1,500 MW) in Bihar state. | ||||||||||
Status of Development Objectives | With the commissioning and full operation of all units in Sipat and Kahalgaon, NTPC has added 4,480 MW to its installed capacity, and has contributed to reducing the energy deficit in India. | ||||||||||
Status of Operation/Construction | All units of NTPC's Sipat STPP (2,980 MW) located in Bilaspur, Chhattisgarh State, and Kahalgaon STPP (1,500 MW) located in Bhagalpur, Bihar State were commissioned and fully operational. Sipat station supplies power to the states in the western region while Kahalgaon station supplies power to the state in the northern, eastern and western regions. |
||||||||||
Linkage to Country/Regional Strategy | ADB's Country Strategy and Program Update (CSPU) for India (2006-2008) confirms ADB''s support for the power sector in India, specifically through national-level interventions and development of more efficient, low-carbon power generation through agencies such as NTPC. The financing supports the focus on strengthening good governance in public sector organizations to optimize the development impact of physical investments. The CSPU currently being prepared underscores the need for ADB to focus its assistance on the Navratna companies. |
Safeguard Categories | |
---|---|
Environment | FI |
Involuntary Resettlement | C |
Indigenous Peoples | C |
Summary of Environmental and Social Aspects | |
---|---|
Environmental Aspects | NTPC's corporate environmental policy and environmental management system (EPEMS) has been reviewed. The EPEMS provides the overall framework for environmental management in accordance with ADB's requirements. Notwithstanding the corporate loan classification, two Projects to be funded from the loan have each been classified as Category A. The environmental impact assessment for each Project has been prepared and reviewed, site visits undertaken and a summary (SEIA) of both projects circulated to ADB''s Board and posted on ADB's website on 29 March 2006. |
Involuntary Resettlement | Category C has been provided for both Projects in compliance with ADB''s policies on resettlement aspect, in view of the fact that resettlement and land acquisition has already been satisfactorily completed in each location. The satisfactory completion of land acquisition and compensatory payments was verified by NTPC and the relevant district authorities. |
Indigenous Peoples | Category C has been provided for both Projects in compliance with ADB''s policies on indigenous peoples aspect. |
Stakeholder Communication, Participation, and Consultation | Consultations were appropriately carried out at the time of land acquisition. |
Timetable for assistance design, processing and implementation | |
---|---|
Concept Clearance | 07 Jul 2005 |
Credit Committee Meeting | 05 Jun 2006 |
Approval | 27 Jul 2006 |
PDS Creation Date | 06 Apr 2006 |
Last PDS Update | 28 May 2018 |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Title | Document Type | Document Date |
---|---|---|
NTPC Capacity Expansion Financing Facility | Extended Annual Review Reports | Oct 2013 |
NTPC Capacity Expansion Financing Facility | Reports and Recommendations of the President | Jun 2006 |
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.
Title | Document Type | Document Date |
---|---|---|
Sipat Super Thermal Power Project (Stage I and II) and Kahalgaon Super Thermal Power Project (Stage II) | Environmental Assessment and Measures | Mar 2006 |
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
None currently available.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.