43464-026: Himachal Pradesh Clean Energy Transmission Investment Program - Tranche 2 | Asian Development Bank

India: Himachal Pradesh Clean Energy Transmission Investment Program - Tranche 2

Sovereign (Public) Project | 43464-026 Status: Active

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 Number 43464-026
Country India
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3001-IND: Himachal Pradesh Clean Energy Transmission Investment Program - Tranche 2
Ordinary capital resources US$ 110.00 million
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.
Project Outcome
Description of Outcome Improved capacity of HPPTCL to transmit electricity from hydropower generation sources within and outside of Himachal Pradesh.
Progress Toward Outcome A special project administration mission was fielded last 11-14 September 2017. Implementation is on going.
Implementation Progress
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 33%.

Procurement for 132/220 kV GIS Pooling station at Sunda and 132/220 kV GIS Pooling station at Charor are under progress.

Geographical Location Allain Duhangan Hydroelectric Plant, Banala, Banjal, Barshaini, Chamba, Charrour Nallah, Hatkoti, Kangra, Kangra, Kinnaur, Kulu, Kurthala, Lahal, Mundla, Palchan, Pandoh, Shahpur, Shimla district, Sunda, Urni, Wangtu
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
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
Executing Agencies
Himachal Pradesh Power Transmission Corporation Ltd.
[email protected]
Barowalia House, Khalini, Shimla 171002, Himachal Pradesh, India
Concept Clearance -
Fact Finding -
Approval 07 May 2013
Last Review Mission -
Last PDS Update 26 Sep 2017

Loan 3001-IND

Approval Signing Date Effectivity Date Closing
Original Revised Actual
07 May 2013 29 Sep 2014 13 Nov 2014 30 Jun 2018 31 Dec 2019 -
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 62.56 0.00 57%
Counterpart 36.30 Cumulative Disbursements
Cofinancing 0.00 07 May 2013 36.75 0.00 33%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory - - - -

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.

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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.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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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Tender Title Type Status Posting Date Deadline
Loan No. 3001-IND: Himachal Pradesh Clean Energy Transmission Investment Program – Tranche 2 [28 - SS / ADB / HPPTCL / 220 kV GIS SUNDA] Invitation for Bids Active 22 Aug 2017 23 Oct 2017

Contracts Awarded

No contracts awarded for this project were found