India: National Grid Improvement Project

Sovereign Project | 44426-014 Status: Active


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.

Latest Project Documents

Consulting Notices See also: CMS

No notices are currently available for this project.

Procurement Notices See also: Operational Procurement

No notices are currently available for this project.

Procurement Documents

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.

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.

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 Enomoto, Kazuhiro
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Power Grid Corporation of India Limited
[email protected]
Plot No. 2, Sector - 29
Gurgaon - 122 001 Haryana, India


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

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 480.73 0.00 96%
Counterpart 1,500.10 Cumulative Disbursements
Cofinancing 0.00 30 Sep 2011 242.58 0.00 49%
Title Document Type Document Date
Guarantee Agreement for National Grid Improvement Project Guarantee Agreements Mar 2012
Loan Agreement for National Grid Improvement Project Loan Agreement (Ordinary Resources) Mar 2012
National Grid Improvement Project Project/Program Administration Manual Sep 2011
National Grid Improvement Project Reports and Recommendations of the President Sep 2011
National Grid Improvement Project Summary Poverty Reduction and Social Strategies Sep 2011
National Grid Improvement Project: Procurement Plan Procurement Plans Aug 2011
National Grid Improvement Project Design and Monitoring Frameworks Apr 2011

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 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.

Requests for information may also be directed to the InfoUnit.