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.
| Project Name | National Grid Improvement Project | ||||
| Project Number | 44426-014 | ||||
| Country | India |
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| Project Status | Closed | ||||
| Project Type / Modality of Assistance | Loan |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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| Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development Private sector development |
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| Sector / Subsector | Energy / Electricity transmission and distribution |
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| 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. |
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| Impact | Accelerated development of inter-regional 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 | Project under implementation |
| Implementation Progress | |
| Description of Project Outputs | Procurement, installation, and commissioning of strengthened interregional transmission network between the northern and western regions Improvements to POWERGRID's corporate credit, access to nonsovereign borrowing, and risk management Procurement, installation, and commissioning of strengthened interregional transmission network Transmission interconnection capacity between the western and southern regional grids expanded |
| Status of Implementation Progress (Outputs, Activities, and Issues) | 1. Construction of 765 kV and 400 kV transmission systems in the state of Uttar Pradesh: - completed. 2. Construction of (+/-) 800 kV HVDC transmission systems including terminals at Kurukshetra and Champa: - completed. 3. Safeguards implemented in compliance with ADB Safeguard Policy Statement (2009) and POWERGRID's environmental and social policy and procedures: - completed. 4. Construction of two (+/-) 800 kV HVDC terminal stations at Raigarh, Chhattisgarh and Pugalur, Tamil Nadu: - under implementation. 5. Construction of two (+/-) 320 kV voltage source converter HVDC terminal stations at Pugalur, Tamil Nadu and Trichur, Kerala: - under implementation. |
| Geographical Location | Bhadson, Champa, Delhi, Kurukshetra, Madhya Pradesh, State of Chhattisgarh, State of Haryana, State of Punjab, State of Uttar Pradesh |
| Safeguard Categories | |
|---|---|
| Environment | B |
| Involuntary Resettlement | B |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | POWERGRID is responsible for undertaking the project in accordance with the initial environment examination (IEE) and implementing the environmental management plan (EMP) in accordance with ADB's Safeguard Policy Statement 2009. A project management unit (PMU) will be responsible for coordinating and implementing all social and environmental activities. |
| Involuntary Resettlement | POWERGRID is responsible for undertaking the project in accordance with the resettlement plan in accordance with ADB's Safeguard Policy Statement 2009. A project management unit (PMU) will be responsible for coordinating and implementing all social and environmental activities. |
| Indigenous Peoples | No indigenous peoples impact is expected as there is no indigenous peoples group in the project areas. |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | A series of consultations with affected persons and communities have been conducted by the project implementing agency for project preparation, and they will be continued. |
| During Project Implementation | A series of consultations with affected persons and communities will be conducted throughout project implementation. |
| Responsible ADB Officer | Karbar, Vallabha R. |
| Responsible ADB Department | South Asia Department |
| Responsible ADB Division | India Resident Mission |
| 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 | 26 Jun 2019 |
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 | 31 Dec 2019 | 14 Jan 2020 |
| 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 | 500.00 | 0.00 | 100% |
| Counterpart | 1,500.10 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 30 Sep 2011 | 500.00 | 0.00 | 100% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | - | Satisfactory | Satisfactory | Satisfactory | - | 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.
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.
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
| Title | Document Type | Document Date |
|---|---|---|
| India: National Grid Improvement Project | Papers and Briefs | Oct 2012 |
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.
Tenders
No tenders for this project were found.
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Contractor Address | Executing Agency | Contract Description | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|---|---|
| LOCAL SUPPLY BHEL IND 800KV HVDC L3365:0033Ù 5818Ù | Loan 2787 | 25 Jul 2018 | JV ABB AB SWEDEN AND BHEL INDIA | KOPPARBERGSVAGEN 2, SE 721 83 SWEDEN SWEDEN | Power Grid Corporation of India Limited | SUPPLY OF GOODS | 187,483,600.00 | 17,833,267.00 |
| SERVICES ABB IND 800KV HVDC L3365:0036Ù 5821Ù | Loan 2787 | 25 Jul 2018 | JV OF ABB AB SWEDEN AND BHEL INDIA | KOPPARBERGSVAGEN 2 SE-721 83 SWEDEN SWEDEN | Power Grid Corporation of India Limited | SUPPLY OF GOODS | 166,645,702.00 | 15,327,255.00 |
| FOREIGN SUPPLY SIEMENS GER 320KV VSC HVDC L3365:0041Ù 7213Ù | Loan 2787 | 25 Jul 2018 | SIEMENS AG GERMANY | WITTELSBACHERPLATZ 2 80333 MUNICH NONNENDAMMLLEE 101, 13623 BERLIN GERMANY GERMANY | Power Grid Corporation of India Limited | TURNKEY | 152,755,357.00 | 3,132,473.00 |
| FOREIGN SUPPLY SUMITOMO JPN 320KV VSC HVDC L3365:0042Ù 7214Ù | Loan 2787 | 25 Jul 2018 | SUMIMOTO ELEC INDUS LTD | 1-3-13, MOTOAKASAKA, MINATOKU TOKYO, 1978468 JAPAN JAPAN | Power Grid Corporation of India Limited | TURNKEY | 77,876,086.00 | 8,287,803.00 |
| SERVICES SUMITOMO JPN 320KV VSC HVDC L3365:0046Ù 7218Ù | Loan 2787 | 25 Jul 2018 | JV OF SIEMENS AG AND SUMIMOTO ELEC INDUS LTD | WILLELSBACHERPLATZ 2 80333 NONNENDAMMALLEE 101, 13623 GERMANY GERMANY | Power Grid Corporation of India Limited | TURNKEY | 46,656,557.00 | 3,917,966.00 |
| SERVICES SIEMENS IND 320KV VSC HVDC L3365:0045Ù 7217Ù | Loan 2787 | 25 Jul 2018 | JV OF SIEMENS AG & SUMIMOT INDUS ELEC LTD | WITTELSBACHERPLATZ 2 80333 NONENDAMMALLEE 101, 13623,GERMANY GERMANY | Power Grid Corporation of India Limited | TURNKEY | 40,825,390.00 | 6,303,919.00 |
| SERVICES BHEL IND 800KV HVDC L3365:0035Ù 5820Ù | Loan 2787 | 25 Jul 2018 | JV OF ABB SWEDEN AND BHEL INDIA | KOPPARBERGSVAGEN 2 SE 721 83 SWEDEN | Power Grid Corporation of India Limited | SUPPLY OF GOODS | 8,090,497.00 | 3,155,584.00 |
| LOCAL SUPPLY ABB IND 800KV 6000MW HVDC L3365:0034Ù 5819Ù | Loan 2787 | 25 Jul 2018 | ABB AB SWEDEN AND BHEL INDIA | KOPPARBERGSVAGEN 2 SE 721 83 SWEDEN SWEDEN | Power Grid Corporation of India Limited | SUPPLY OF GOODS | 356,143,590.00 | 23,892,640.00 |
| LOCAL SUPPLY SIEMENS IND 320KV VSC HVDC L3365: 0043Ù 7215Ù | Loan 2787 | 25 Jul 2018 | JV OF SIEMENS AG AND SUMIMOTO ELEC INDUS LTD | WITTELSBACHERPLATZ 2 80333 NONNENDAMMALLEE 101 13623 GERMANY GERMANY | Power Grid Corporation of India Limited | TURNKEY | 217,419,412.00 | 6,647,985.00 |
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| National Grid Improvement Project: Procurement Plan | Procurement Plans | Jul 2018 |