Announcement of IDA Provides One Hundred and Fifty Million Dollars for a Power Project in India on March 3, 1977

•World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.SA • Telephone: (202) 393-6360 IDA NEWS RELEASE NO. 77/33 MARCH 3, 1977 J._l?_A__P_R_9~!_DES $150 MILLI ON FOR A POWER PROJECT IN I ND I A A credlt of $150 million from the International Develop- ment Association (lDA), an affiliate of the World Bank, will help finance the construction of the first phase of a 2,000-megawatt (MW) thermal power station in India. India's installed power generating capacity, which at the. end of 1976 was a little more than 20,000 MW, increased at an average annual rate of 10% over the 20-year period beginning 1950. In recent years, however, demand has been considerably greater than available supply. India plans to install additional capacity amounting to almost 30,000 MW by March 1984. The expansion and reinforcement of the transmission network in step with generating plant additions is also being planned. In view of the immense task • of providing sufficient generating capacity to meet the requirements of the economy, India's Central Government proposes to supplement the efforts of the states by constructing a number of large centrally owned and operated generating stations. The project being assisted by the IDA credit is part of this effort. The project consists of the construction of the first 600 MW of capacity in the Singrauli thermal power station, together with ancillary equipment and related works and the 400-kilovolt (kV) transmission facilities to convey this amount of power to bulk supply points. The power station will be constructed on the Singrauli coal field at Kot2 in Uttar Pradesh State. It is expected to reach 2,000 MW capacity by October 1985. The total Singrauli development, including associated transmission, is estimated to cost about $1.2 billion. The project being assisted by the IDA credit is estimated to cost about $397 ml Ilion. Implementation of the project will be the responsibility of the National Thermal Power Corporation Ltd. The IDA credit to India is for 50 years, including 10 years of grace. It !s interest free except for a service charge of 3/4 of 1% to meet IDA's administrative expenses. The Government will re-lend the proceeds of the credit to the National Thermal Power Corporation for 20 years, including five years of grace, at an effective interest rate cf 10-1/4% per annum . • The Bank and IDA have been involved in the development of India's power sector since 1950. Today's crerlit brings the total of Bank and IDA assistance to the country's power sector to $775.5 mi 11 ion. NOTE: Money figures are expressed in U.S. dollar equfvalents. FORM N0.1121 (5-76) T ECHN CA L DA T A • I PROJECT: Singrauli Thermal Power COUNTRY: India TOTAL COST: $39 7 mi 1l i on !DA FINANCING: $150 mill ion credit, standard IDA terms OTHER Ft NANCI NG: Government of India IMPLEMENTING ORGANIZATION: National Thermal Power Corporation Ltd, 312 Kailash, 26 Kasturba Gandhi Marg, New Delhi 110 001, India. Cable: THERMPOWER; Telex: 44951 PROJECT DESCRIPTION: It consists of the construction of the first 600 MW of power generating capacity at the Singrauli thermal power station, in the State of Uttar Pradesh, together with ancillary equipment and related works, and associated • 400 kV transmission. PROCU.REMENT: All equipment and materials to be financed by IDA wi 11 be procured through international competitive bidding. A preference of 15%, or the actual import duty, whichever is lower, will be granted to Indian suppliers for the purpose of evaluating international bids. CONSULTANTS: 25 man-months for system study of inter-connected 400 kV transmission system; 150 man-months for design and super- vision of construction of power station; and 50 man-months for design and supervision of construction of the 400 kV transmission associated with the project. ESTIMATED COMPLETION DATE: October 1982 - 0 - •