Summary
ADB is helping India strengthen its transmission network to efficiently transfer electricity to regions where the need is greatest. The project will install a 1,300-kilometer interregional transmission link using 800-kilovolt high voltage direct current technology, a key driver of smart grid development. The project loan will be made available to government-owned transmission utility, POWERGRID.
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Procurement Documents
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| Project Name |
National Grid Improvement Project |
| Project Number |
44426-014 |
| Country |
India |
| Project Status |
Active |
| Project Type / Modality of Assistance |
Loan
|
| Source of Funding / Amount |
| Loan 2787-IND: National Grid Improvement Project |
|---|
| Ordinary capital resources |
US$ 500.00
million
|
|
| Strategic Agendas |
Environmentally sustainable growth
Inclusive economic growth
|
| Drivers of Change |
Governance and capacity development
Private sector development
|
| Sector / Subsector |
Energy
- Electricity transmission and distribution |
| Gender Equity and Mainstreaming |
Some gender elements |
| Description |
To optimize transnational power supply and promote country-wide power transfer in an efficient manner, the Government aims to integrate regional power grid network systems, which comprise five interconnected electrical regions including northern, north-eastern, eastern, western, and southern. Each electrical region attempts to connect and synchronize power system of neighboring states within the region, but interregional power transfer capacity has still been limited. Since natural energy resources are unevenly distributed and concentrated in certain locations, surplus power from some regions can be transferred to other regions in power deficit only when creating transmission super highways among the regions. While the existing interregional transmission capacity stands at 22,400 MW, the Government targets to increase this capacity to 27,950 MW by 2012, growing to 57,000 MW by 2015, and 75,000 MW by 2017 under the 12th Five Year Plan. Such interregional transmission strengthening will create a backbone to sustain open power supply and investment in both generation and distribution. |
| Project Rationale and Linkage to Country/Regional Strategy |
Power Grid Corporation of India, Limited (POWERGRID) plans to strengthen the interregional transmission connection between Chhattisgarh in the Western grid region and Haryana in the Northern grid region of India to support bulk power supply from private generation companies of 14 independent power producers (IPPs). The Indian power sector has historically been characterized by energy shortage against growing electricity demand. During 2009-10, peak power deficit was estimated to be 12.7% and average energy deficit was 10.1%. The country is in chronic need of additional power supply and the power sector continues to be affected by the shortfall both on generation and transmission capacity. It is evident that the deficit in power availability is a significant impediment to the sustainable development of the country's economy. The capacity of the overall power supply system will need to be urgently increased commensurate with overall system efficiency improvements. |
| Impact |
Accelerated development of interregional grid system for increased power supply |
Project Outcome
| Description of Outcome |
Increased reliable power supply from private IPPs and public utilities within the interconnected grid network |
| Progress Toward Outcome |
Ongoing |
| Implementation Progress |
|---|
| Description of Project Outputs |
1. Procurement, installation, and commissioning of strengthened interregional transmission network between the northern and western regions 2. Improvements to POWERGRID's corporate credit, access to nonsovereign borrowing, and risk management |
| Status of Implementation Progress (Outputs, Activities, and Issues) |
Original 17 contracts are already signed. Bidding for additional 15 contracts are ongoing, out of which 14 were signed and awarded. |
| Geographical Location |
|
Safeguard Categories
| Environment |
B |
| Involuntary Resettlement |
B |
| Indigenous Peoples |
C |
Summary of Environmental and Social Aspects
| Environmental Aspects |
|
| Involuntary Resettlement |
|
| Indigenous Peoples |
|
| Stakeholder Communication, Participation, and Consultation |
|---|
| During Project Design |
|
| During Project Implementation |
|
Responsible Staff
| Responsible ADB Officer |
Kazuhiro Enomoto |
| Responsible ADB Department |
South Asia Department |
| Responsible ADB Division |
Energy Division, SARD |
| Executing Agencies |
Power Grid Corporation of India Limited
[email protected]
SAUDAMANI
Plot No. 2, Sector - 29
Gurgaon - 122 001 Haryana, India
|
Timetable
| Concept Clearance |
28 Apr 2011 |
| Fact Finding |
29 Apr 2011
to 13 May 2011 |
| MRM |
27 Jul 2011 |
| Approval |
30 Sep 2011 |
| Last Review Mission |
-
|
| Last PDS Update |
07 Sep 2016 |
Loan 2787-IND
| Milestones |
|---|
| Approval |
Signing Date |
Effectivity Date |
Closing |
| Original |
Revised |
Actual |
| 30 Sep 2011 |
30 Mar 2012 |
22 Oct 2012 |
30 Jun 2017 |
-
|
-
|
| Financing Plan |
Loan Utilization
|
|
Total (Amount in US$ million) |
Date |
ADB |
Others |
Net Percentage |
| Project Cost |
2,000.10 |
Cumulative Contract Awards |
| ADB |
500.00 |
30 Sep 2011 |
484.66 |
0.00
|
97% |
| Counterpart |
1,500.10 |
Cumulative Disbursements |
| Cofinancing |
0.00 |
30 Sep 2011 |
188.91 |
0.00
|
38% |
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.
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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