fbpx 51308-001: Chennai-Kanyakumari Industrial Corridor: Power Sector Investment Project | Asian Development Bank

India: Chennai-Kanyakumari Industrial Corridor: Power Sector Investment Project

Sovereign (Public) Project | 51308-001 Status: Active

The Chennai -Kanyakumari Industrial Corridor: Power Sector Investment Project will address the core problem of meeting the expected industrial power demand to ensure reliable power supply by augmenting the power transmission capacity between the southern part of the state (Madurai -Thoothukudi), the northern region (Chennai), and the western region (Coimbatore) at 765 kilovolt (kV) level. The proposed investment is expected to provide a transmission corridor to evacuate power from the renewable and thermal power plants to be located in Madurai -Thoothukudi area and supply industrial hubs in the Chennai- Madurai area and in Coimbatore.

The proposed project will have two outputs consisting of:

 
Project Name Chennai-Kanyakumari Industrial Corridor: Power Sector Investment Project
Project Number 51308-001
Country India
Project Status Active
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 3850-IND: Chennai-Kanyakumari Industrial Corridor Power Sector Investment Project
Ordinary capital resources US$ 451.00 million
TA 9843-IND: Institutional Capacity Building of Tamil Nadu Transmission Corporation Limited
Technical Assistance Special Fund US$ 650,000.00
TA 9843-IND: Institutional Capacity Building of Tamil Nadu Transmission Corporation Limited (Supplementary)
Technical Assistance Special Fund US$ 350,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Private sector development
Sector / Subsector

Energy / Electricity transmission and distribution

Gender Equity and Mainstreaming Some gender elements
Description

The Chennai -Kanyakumari Industrial Corridor: Power Sector Investment Project will address the core problem of meeting the expected industrial power demand to ensure reliable power supply by augmenting the power transmission capacity between the southern part of the state (Madurai -Thoothukudi), the northern region (Chennai), and the western region (Coimbatore) at 765 kilovolt (kV) level. The proposed investment is expected to provide a transmission corridor to evacuate power from the renewable and thermal power plants to be located in Madurai -Thoothukudi area and supply industrial hubs in the Chennai- Madurai area and in Coimbatore.

The proposed project will have two outputs consisting of:

(i) Output 1: This will establish a 765 kV power transmission link between the energy generation hub in Madurai Thoothukudi area and load centers in the western and northern parts of the state. This output consists of (a) Virudhunagar (765/400/230 kV, 2x1,500 megavolt amperes [MVA] and 2x500 MVA) substation; (b) 320 km of 765 kV transmission lines from Virudhunagar to Coimbatore; and (c) 356 km of 400 kV transmission lines to link Virudhunagar substation to several 400/230 kV pooling substations for wind and solar power plants; and

(ii) Output 2: This will establish a pooling substation to receive electricity generated from power plants in the Thoothukudi district. This consists of (a) Ottapidaram (400/230/110 kV, 2x315 MVA and 2x200 MVA) substation; (b) 200 km of 400 kV transmission lines to connect Ottapidaram substation with several thermal and renewable power plants; and (c) 90 km of 230 kV and 110 kV transmission lines to connect Ottapidaram substation with nearby load centers.

(iii) : Financial and institutional capacity of Tamil Nadu Transmission Corporation Limited improved. This output will (i) assist TANTRANSCO in implementing the FRP to restore its financial sustainability; (ii) support the financial management action plan (FMAP) to improve the financial management capacity and corporate governance of TANTRANSCO; (iii) facilitate the introduction of gender-sensitive workplace practices; and (iv) enhance the capacity of TANTRANSCO to monitor the environmental and social impacts of transmission projects. The attached TA will support these activities.

Project Rationale and Linkage to Country/Regional Strategy

The Madurai Thoothukudi area of CKIC has excellent wind and solar resources, of which about 4,000 MW is proposed for development in the next 5 years. In addition, 4,000 MW of thermal capacity additions will also be located in this region. Due to inadequate transmission network capacity, there has been curtailment of wind and solar energy and this will continue to act as a barrier to the further development of renewable energy in the region. These constraints may also cause the reliability of power supply to industrial nodes in Chennai Trichy area of CKIC and in Coimbatore to deteriorate, hindering further expansion of industrial development of the state.

Required strengthening of the transmission network includes a critical need to improve the transmission connectivity at extra high voltage 765 kilovolt (kV) level between the proposed energy hub in Madurai Thoothukudi area in the southeast region of Tamil Nadu and demand centers in Chennai Madurai in the northern area of CKIC and Coimbatore. In addition, the proposed renewable energy hubs need to be connected to the 765 kV network through pooling substations at 400 kV level. Industrial parks in Madurai Thoothukudi area also require connectivity at 230 kV level to meet the expected increase in electricity demand.

Impact Industrial development and renewable energy utilization in Tamil Nadu enhanced
Project Outcome
Description of Outcome Power supply in the CKIC increased in a financially sustainable manner
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Transmission link from southern CKIC to load centers in northern CKIC established

Pooling substation established in Thoothukudi District

Financial and institutional capacity of TANTRANSCO improved

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Tamil Nadu
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
Business Opportunities
Consulting Services A transaction technical assistance of $500,000 to be financed through TASF Others is proposed to (i) enhance TANTRANSCO's financial management capacity; (ii) address remaining legacy issues from incomplete unbundling of TANTRANSCO (transmission company) from distribution and generation operations of erstwhile Tamil Nadu Electricity Board (TNEB); and (iii) enhance gender inclusivity of the project.
Procurement Advanced procurement action will be used for procurement of EPC contractors for supply and installation of substations and transmission lines. It is likely that contracts up to 30% of the proposed loan amount may be awarded as advanced contracts. The recommended project procurement classification is category A given (i) the presence of high value contracts in excess of $100 million; (ii) TANTRANSCO''s lack of experience in implementing ADB-financed projects.
Responsible ADB Officer Perera, Pradeep
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Ministry of Finance (Aid Accounts & Audit Division)
[email protected]
5th Floor, B Wing, Janpath Bhawan
Janpath, New Delhi 110 001
India
Tamil Nadu Transmission Corporation Limited (TANTRANSCO)
144, Anna Salai, Chennai - 600002, Tamil
Nadulm India
Timetable
Concept Clearance 12 Jul 2018
Fact Finding 21 Jan 2019 to 28 Jan 2019
MRM 31 Jul 2019
Approval 04 Nov 2019
Last Review Mission -
Last PDS Update 04 Nov 2019

Loan 3850-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
04 Nov 2019 28 Nov 2019 17 Jan 2020 30 Jun 2025 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 653.50 Cumulative Contract Awards
ADB 451.00 04 Nov 2019 381.03 0.00 84%
Counterpart 202.50 Cumulative Disbursements
Cofinancing 0.00 04 Nov 2019 31.86 0.00 7%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Unsatisfactory - - - - -

TA 9843-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
04 Nov 2019 30 Dec 2019 30 Dec 2019 30 Nov 2021 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,000,000.00 0.00 0.00 0.00 0.00 0.00 1,000,000.00 04 Nov 2019 24,702.00
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Unsatisfactory - - - - -

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

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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Tenders

Tender Title Type Status Posting Date Deadline
Support for the implementation of the FRP and Ind-As Firm - Consulting Closed 10 Jul 2020 24 Jul 2020
Social Safeguard Monitoring Expert Individual - Consulting Closed 28 Jan 2020 31 Jan 2020
Environmental Monitoring Expert Individual - Consulting Closed 28 Jan 2020 31 Jan 2020
Support for the implementation of the FRP and Ind-As Firm - Consulting Closed 17 Dec 2019 15 Jan 2020
Financial Management Advisor Individual - Consulting Closed 13 Dec 2019 19 Dec 2019
51308-IND: Chennai-Kanyakumari Industrial Corridor Power Sector Investment Project [Package No. 9] Invitation for Bids Closed 16 Oct 2019 27 Nov 2019
Loan No. 51308-IND: Chennai-Kanyakumari Industrial Corridor Power Sector Investment Project [Package No. VII] Invitation for Bids Closed 26 Mar 2019 18 May 2019
Loan No. 51308-IND: Chennai-Kanyakumari Industrial Corridor Power Sector Investment Project [Package No. IV] Invitation for Bids Closed 22 Mar 2019 20 May 2019
Loan No. 51308-IND: Chennai-Kanyakumari Industrial Corridor Power Sector Investment Project [Package No. V] Invitation for Bids Closed 22 Mar 2019 20 May 2019
Loan No. 51308-IND: Chennai-Kanyakumari Industrial Corridor Power Sector Investment Project [Package No. VI] Invitation for Bids Closed 22 Mar 2019 20 May 2019
Loan No. 51308-IND: Chennai-Kanyakumari Industrial Corridor Power Sector Investment Project [Package No. X] Invitation for Bids Closed 22 Mar 2019 20 May 2019
Loan No. 51308-IND: Chennai-Kanyakumari Industrial Corridor Power Sector Investment Project [Package No. II] Invitation for Bids Closed 04 Feb 2019 18 May 2019
IND: Chennai-Kanyakumari Industrial Corridor Power Sector Investment Project Advance Notice Active 25 Jan 2019

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
PACKAGE 5(T-21)765KV DC TRANSMISSION LINE-PACKAGE 2 ASSOCIATED WITH 765/400KV VIRUDHUNAGAR STATION Loan 3850 28 Jan 2020 M/S KEC INTERNATIONAL LIMITED,GURGAON RPG HOUSE,FIRST FLOOR 463 DR. ANNIE BESANT ROAD,MUMBAI 400030 INDIA Tamil Nadu Transmission Corporation Limited TURNKEY 62,227,989.68 62,227,989.68
PACKAGE 4(T-20) 765KV DC TRANSMISSION LINE-PACKAGE 1, ASSOCIATED WITH 765/400 KV VIRUDHUNAGAR STATION Loan 3850 28 Jan 2020 KALPATARU POWER TRANSMISSION LIMITED 101 PART III GIDC ESTATE,SECTION 28, GANDHINAGAR,GUJARAT 382028 INDIA Tamil Nadu Transmission Corporation Limited TURNKEY 62,253,126.88 62,253,126.88
PACKAGE 7(T-2096) OTTAPIDARAM 400KV SUBSTATIONS & ASSOCIATED 400KV TRANSMISSION LINES Loan 3850 21 Jan 2020 LARSEN & TOUBRO LIMITED, CHENNAI 600 089 P.O. BOX 979 MOUNT POONAMMALLEE ROAD, CHENNAI 600 089 TAMIL NADU INDIA Tamil Nadu Transmission Corporation Limited TURNKEY 100,881,413.90 100,644,556.40