fbpx 51228-001: Railways Track Electrification Project | Asian Development Bank

India: Railways Track Electrification Project

Nonsovereign (Private) Project | 51228-001 Status: Approved

Project Details

Project Officer
Choudhary, Mayank Private Sector Operations Department Request for information
Country
  • India
Sector
  • Transport
 
Project Name Railways Track Electrification Project
Project Number 51228-001
Borrower/Company Indian Railway Finance Corporation
Country India
Location Nation-wide
Type or Modality of Assistance
3680 Loan Ordinary capital resources INR 50,385.00 million Approved
Strategic Agendas Inclusive economic growth
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Transport / Rail transport (non-urban)

Gender Equity and Mainstreaming No gender elements
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Infrastructure Finance Division 1
Responsible ADB Officer Choudhary, Mayank
Project Sponsor(s) Indian Railway Finance Corporation
Description
Objectives and Scope The proposed financing, aimed at supporting key infrastructure development, represents a unique opportunity for ADB to support the government's railways modernization program. The project involves electrification of existing railway tracks spread across 13 states in India. Electric traction has following advantages: (i) it is substantially cheaper to run trains on electric traction compared with diesel-powered trains. Despite carrying 65.4% of all freight and 51.2% of the passenger load of Indian Railways, electric traction accounts for only 36% of the total energy bill, with diesel accounting for the balance 64%. (ii) electric traction is not dependent on a specific primary source of energy (in contrast to diesel) and can therefore be sourced from a range of energy forms taking price and other characteristics into consideration, such as increasing renewable energy capacity in India. (iii) electric traction makes regenerative braking possible, where energy is recovered from braking or slowing down of the train and thereby saving energy by up to 20%. (iv) use of electricity reduces dependence on imported energy (diesel), thereby helping manage the current account deficit, and removes variability of input energy prices which are dependent on international crude oil price movements. ADB is providing a 20-year amortizing local currency loan. Structuring the transaction in this manner allows IRFC to match the cash flows from the assets to loan repayment with no foreign exchange risk. The aggregate funding requirements of Indian Railways for its ongoing modernization program is immense about $132 billion. The precedent set through this transaction will encourage other private sector institutions to provide financing to IRFC for its project pipeline.
Linkage to Country/Regional Strategy The project's development supports infrastructure, one of ADB's five core operational areas, which are reaffirmed through the Midterm Review of Strategy 2020. ADB's country partnership strategy, 2018 2022 for India is based on three development pillars: (i) boosting economic competitiveness to create more and better jobs, (ii) inclusive provision of infrastructure networks and services, and (iii) addressing climate change and increasing climate resilience. The project particularly supports pillars (i) and (ii).
Safeguard Categories
Environment
Involuntary Resettlement
Indigenous Peoples
Summary of Environmental and Social Aspects
Environmental Aspects The project is classified category B for impacts on environment which are generally site specific, reversible, and mostly associated with construction activities, such as land and vegetation clearing for site preparation, transportation and delivery of equipment and materials, excavation and laying of foundations for electricity poles and transmission towers. Environmental impacts include occupational and community health and safety, short-term and localized generation of dust, air emission, noise, wastes, soil erosion, and water pollution. The transmission lines will be aligned through agricultural or government land avoiding any impacts on forests or water bodies. The recommended mitigation measures to address the project environmental impacts are presented in the environmental management plan and will be implemented and monitored by IRFC. Initial environmental examinations in accordance with the environmental assessment and review framework, will be prepared for each of the corridors proposed for ADB funding, prior to disbursement.
Involuntary Resettlement

In compliance with ADB's Safeguard Policy Statement, the project is classified as category B for involuntary resettlement. The railways electrification will be carried out along the existing tracks within land owned by Indian Railways and is unlikely to result in physical or economic displacement impacts. New facilities such as traction substations and sectioning and paralleling posts will be located on railway land. No permanent land acquisition will be carried out for the transmission line alignments. These alignments will be finalized to avoid impacts on structures and assets, agricultural lands, forests and water bodies. Compensation for temporary damage to crops and trees will be paid at replacement costs to the landowners. Corridors categorized as A for involuntary resettlement impacts will excluded from ADB funding.

The due diligence carried out for the two corridors (Rohtak Panipat and Ranchi Tori sections) confirm that no land acquisition and involuntary resettlement impacts are expected along the electrification tracks. The 8.0 km transmission line for the Rohtak Panipat section and the 8.8 km transmission line for the Ranchi Tori section will traverse private agricultural land and the 132 kilovolt transmission towers will be erected on private land. Compensation for temporary damage to crops and trees will be paid at replacement costs to the landowners.

The resettlement framework includes procedures for screening of corridors and guidance for preparation, implementation and monitoring of resettlement plans. Resettlement Plans for each of the corridors proposed for ADB funding will be prepared, in line with the resettlement framework, prior to disbursement.

Indigenous Peoples

The project is classified as category B for indigenous peoples. The indigenous peoples planning framework for the proposed loan will include procedures for screening of corridors and guidance for preparation, implementation and monitoring of indigenous peoples plans. Corridors categorized as A for indigenous peoples impacts will excluded from ADB funding.

Based on the due diligence carried out two corridors (Rohtak Panipat and Ranchi Tori), a section of the 8.8 km transmission line for the Ranchi Tori corridor passes through scheduled areas occupied by tribal groups. The impacts are expected to be limited to temporary crop damage during construction.

Stakeholder Communication, Participation, and Consultation Consultations with the officials of CORE, electric transmission agencies and other stakeholders, such as rail users, and people living along the railway corridor, were undertaken during the preparation of the IEEs. Local residents opined the need for the electrification of the corridor for the better services of rail passengers. Corridors which will be financed by ADB will follow the consultation, information disclosure requirements under the IFRC safeguards frameworks.
Timetable for assistance design, processing and implementation
Concept Clearance 29 Aug 2017
Credit Committee Meeting 25 Apr 2018
Approval 10 Jul 2018
Last PDS Update 12 Jun 2019

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.

Title Document Type Document Date
Railways Track Electrification Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Jul 2018
Railways Track Electrification Project: Report and Recommendation of the President Reports and Recommendations of the President Jun 2018

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 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.

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