ADB is helping India’s Himachal Pradesh improve its power transmission facilities to expand supply in and outside the state. The second tranche of the investment program will construct transmission lines and substations, and improve project management and transmission utility operations of state-run utility, HP Power Transmission Corporation.
|Project Name||Himachal Pradesh Clean Energy Transmission Investment Program - Tranche 2|
|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|
The Project proposed for financing under the requested PFR consists of:
1._New Transmission System Assets
A._Transmission Line Construction
i. 66 kV D/C Line from 66 kV Switching station at Urni to Wangtoo Sub station.
ii._220 kV Line from 33/220 kV Lahal sub station up to 220 kV Yard of Budhil HEP.
iii._220 kV D/C (Twin MOOSE) Transmission Line from Sunda to Hatkoti.
iv. 132 kV D/C (PANTHER) Transmission Line from Kangra to Dehra.
v._220 kV D/C line (Twin MOOSE) from Charor to 400/220 kV Banala sub station of PGCIL.
B._Construction of Sub Stations
i._66 kV Switching station at Urni.
ii._33/220/400 kV, 50/63 MVA P.S at Lahal.
iii._132/220 kV, 2x100 MVA Pooling Station at Sunda.
iv._132/220 kV, 1x80/100 MVA Sub Station at Charor.
|Project Rationale and Linkage to Country/Regional Strategy||
The Indian power sector has a history of steadily increasing demand for, and chronic shortages of electricity. An adequate power supply contributes to poverty alleviation, yet over 30% of India's population lack access to electricity. Continued shortages significantly constrain commercial and industrial activity and reduce growth. Businesses and manufacturers must utilize more expensive back-up power supplies, often diesel fuel-based, which increase their costs and undercut competitiveness. Insufficient domestic fuel resources and rising international coal and oil prices threaten India's already fragile energy security, such that maximizing, clean indigenous energy sources is a government priority.
Himachal Pradesh is home to about one fourth of India's hydropower potential, and maximizing this potential is articulated in the Hydropower Policy, 2007 of the Government of Himachal Pradesh (GOHP) and in their power sector roadmap, which targets its comparative advantage in hydropower with the goal to become the _hydropower state_ of the country. Hydropower will benefit electricity consumers of Himachal Pradesh and throughout northern India as excess generated power flows to India's national grid. The primary alternative, namely coal-fired power generation and its associated coal mining and coal transport, have considerable adverse impacts on the environment as well as climate change, including substantial emissions of CO2 and of suspended particulate matter.
The state's power sector road map encourages investment in hydropower generation_the majority of which are run-of-river type_and articulates that Himachal Pradesh must build out its electric transmission infrastructure so that the additional hydropower can be efficiently transmitted within and outside the state. As Himachal Pradesh is one of the few states in India with 100% electrification at the village level, additional hydropower capacity will not just serve the state's growing demand, but will serve the national grid through interstate power flows. As a subset of the overall sector road map, and with support from the Asian Development Bank (ADB), HPPTCL has prepared a power system master plan to articulate a transmission network expansion plan for Himachal Pradesh. This plan, endorsed by India's Central Electricity Authority (CEA), provides a sound basis for investment in transmission facilities, and is expected to engender confidence among existing and potential private hydropower developers that sufficient transmission capacity will be available to evacuate power from hydropower facilities to markets outside of Himachal Pradesh. The investment program thus consists of transmission system investments, and a capacity development program for HPPTCL as the state transmission utility.
|Impact||Increased electricity transmission in Himachal Pradesh.|
|Description of Outcome||Improved capacity of HPPTCL to transmit electricity from hydropower generation sources within and outside of Himachal Pradesh.|
|Progress Toward Outcome||A review and consultation mission was fielded last 16-24 March 2017. Implementation is on going.|
|Description of Project Outputs||
New Transmission system assets are operational
Enterprise resource planning (ERP) system, phase II and additional IT hardware installed in HPPTCL corporate facilities and are operational
Capacity of HPPTCL personnel on project management, and transmission utility operations improved
|Status of Implementation Progress (Outputs, Activities, and Issues)||
In 2016, all disbursement targets were met. Overall Physical Progress is around 20%.
Procurement for 132/220 kV GIS Pooling station at Sunda and 132/220 kV GIS Pooling station at Chambi are under progress.
Summary of Environmental and Social Aspects
|Environmental Aspects||The civil construction work is limited to building foundations for the transmission towers, and substations, and the tranche 2 project does not come within any environmentally sensitive area. Based on the environmental assessment and surveys, associated potential adverse environmental impacts are minimal and can be mitigated through implementation of the environmental management plan (EMP). An adequate budgetary provision in the tranche 2 project covers the environmental mitigation and monitoring requirements, and the EMP is part of the construction contracts. HPPTCL will supervise the construction contracts and EMP implementation, and semiannual progress reports of its implementation will be submitted to ADB. Overall, the major social and environmental impacts associated with the tranche 2 project are limited to the construction period and can be mitigated to an acceptable level by implementation of recommended engineering measures and environmental practices.|
|Involuntary Resettlement||The subprojects will have minor involuntary resettlement impacts. Of the four proposed substations, all are to be built on private land which requires total of 6.85 hectares of private land. All affected households will be compensated in cash prior to the start of construction works. No physical displacement will occur. People living along the transmission line corridors will undergo temporary impacts limited to the loss of one season of crops and trees along the right-of-way of the lines. Most of the tower footings will be on government land. Where towers are placed on private land, HPPTCL will pay appropriate compensation per the resettlement plan. Land required for each tower will not exceed 225 square meters, equivalent to 15 meters x 15 meters maximum.|
|Indigenous Peoples||As the project has been classified as indigenous peoples category C, no separate indigenous peoples plan was prepared. However, the resettlement plan contains specific measures through additional entitlements accorded to scheduled tribes who are considered as vulnerable groups should any be affected in the future, although this is not expected.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||Consultations were carried out with stakeholders from February to September 2012 during the preparatory safeguard due-diligence work. As an integral part of the safeguards planning process, affected persons and local communities were consulted during the preparation of Tranche 2 safeguards documents, i.e., the resettlement plan (RP) and initial environmental examination (IEE). Public consultations with the project affected communities, stakeholders, and government officials were carried out around the proposed transmission line/substations. HPPTCL will provide relevant resettlement information in a timely manner in an accessible place and in a form and language (Hindi/English) understandable to affected persons and other stakeholders. The draft and final RP will be disclosed on ADB's website and HPPTCL's website.|
|During Project Implementation||All stakeholders were informed and the stream of consultation and disclosure of information will continue during the implementation of the project.|
|Responsible ADB Officer||Bhatt, Jigar Arvindbhai|
|Responsible ADB Department||South Asia Department|
|Responsible ADB Division||India Resident Mission|
Himachal Pradesh Power Transmission Corporation Ltd.
Barowalia House, Khalini, Shimla 171002, Himachal Pradesh, India
|Approval||07 May 2013|
|Last Review Mission||-|
|Last PDS Update||30 Mar 2017|
|Approval||Signing Date||Effectivity Date||Closing|
|07 May 2013||29 Sep 2014||13 Nov 2014||30 Jun 2018||-||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||146.30||Cumulative Contract Awards|
|ADB||110.00||07 May 2013||61.94||0.00||56%|
|Cofinancing||0.00||07 May 2013||23.83||0.00||22%|
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 Public Communications Policy (PCP) 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.
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|Title||Document Type||Document Date|
|Himachal Pradesh Clean Energy Transmission Investment Program - Tranche 2: Procurement Plan||Procurement Plans||Dec 2016|
|Amendment to the Loan Agreements (Ordinary Operations) for Loans 2794 and 3001-IND: Himachal Pradesh Clean Energy Transmission Investment Program - Tranches 1 and 2||Loan Agreement (Ordinary Resources)||Jul 2016|
|Loan Agreement for Himachal Pradesh Clean Energy Transmission Investment Program - Project 2||Loan Agreement (Ordinary Resources)||Sep 2014|
|Project Agreement for Himachal Pradesh Clean Energy Transmission Investment Program - Project 2||Project/Program Agreements||Sep 2014|
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|
|Himachal Pradesh Clean Energy Transmission Investment Program - Tranche 2||Initial Environmental Examination||Oct 2012|
|Himachal Pradesh Clean Energy Transmission Investment Program (HPCETIP) - Tranche 2||Resettlement Plans||Oct 2012|
Evaluation Documents See also: Independent Evaluation
None currently available.
None currently available.
The Public Communications Policy (PCP) 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.
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