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

Sovereign 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.

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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. 33 kV D/C Line from the 33 kV Palchan Switching Station to the 33/220 kV substation in the yard of Allain Dhuangan Hydro Electric Project

ii. 66 kV D/C Line from 66 kV Switching station at Urni to Wangtoo Sub station .

iii. 220 kV Line from 33/220 kV Lahal sub station up to 220 kV Yard of Budhil HEP.

iv. 220 kV D/C (Twin MOOSE) Transmission Line from Sunda to Hatkoti.

v. 132 kV D/C (PANTHER) Transmission Line from Kangra to Dehra.

vi. 220 kV D/C line (Twin MOOSE) from Charor to 400/220 kV Banala sub station of PGCIL.

vii. 132 kV D/C Line from Barsaini to Charor.

B. Construction of Sub Stations

i. 33 kV GIS switching station at Palchan

ii. 66 kV Switching station at Urni.

iii. 33/220/400 kV, 50/63 MVA P.S at Lahal.

iv. 220 kV GIS switching station at Hatkoti.

v. 132/220 kV, 2x100 MVA Pooling Station at Sunda.

vi. 33/132 kV GIS switching station at Barsaini

vii. 132/220 kV, 1x80/100 MVA Sub Station at Charor.

2. Capacity Development

i. Computerized enterprise resource planning solution design and installation phase II.

ii. Additional computer equipment

iii. Training program.

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 review and consultation mission was fielded last 30 May - 3 June 2016. 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 contract awards and disbursement targets were met.
Geographical Location

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 ten proposed substations, 5 are to be built on government land which does not require land acquisition, and the remaining 5 require a total of 6.07 hectares of private land. Land acquisition will affect a total of 43 households. All affected households will be compensated in cash prior to the start of construction works. No physical displacement will occur, and no one is expected to lose more than 10% of their productive resources or livelihoods. Two women headed households will be affected. These fall under the vulnerable category and thus will receive additional compensation commensurate with the type of impacts suffered. Peoples 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. According to preliminary assessments, approximately 240 fruit trees will be affected by the transmission lines. Preliminary assessment on the loss of crop area has been done based on approximate calculation which shows that approximately 56.438 ha of crops will suffer from temporary impacts affecting one productive season. In consultation with affected persons, impacts have been assessed as minor in nature, scale and magnitude.
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 Staff

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 03 Oct 2016

Loan 3001-IND

Approval Signing Date Effectivity Date Closing
Original Revised Actual
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 73.94 0.00 67%
Counterpart 36.30 Cumulative Disbursements
Cofinancing 0.00 07 May 2013 22.30 0.00 20%

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

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