Announcement of India Receives Four Hundred Million US Dollars IDA Credit for Electric Power Development on July 9, 1982

. . . FOR IMMEDIATE RELEASE . . . . •World Bank 1818 H Street, N.W., Washington, D.C. 20433. U.S.A.• Telephone: (202) 477-1234 !DA NEWS RELEASE NO. 82/1 July 9, 1981 lNDIA RECElVES $400 MILLION ~DA CREDIT FOR ELECTRIC POWER DEVELOPMENT The International Development Association (IDA) has approved a credit of SOR 325.6 million ($400 million) to India for the second stage development of the Korba thermal power station in Madhya Pradesh State. The first stage, financed by an IDA credit of $200 million approved in April 1978, is presently under construction. IDA is the World Bank's affiliate for concessionary lending. The $1,387 million project includes the construction of three 500 megawatt {MW) turbogenerators, three 1,725 metric ton-per-hour boilers, auxiliary equipment and related works, and about 1,100 kilometers of 400 kilovolt transmission lines. These additions will bring the power plant to its final installed capacity of 2,100 MW by December 1988. The first 500 MW unit is expected to be commissioned by December 1986, with the remaining two following at one-year intervals. • Construction will be carried out by the National Thermaf Power Corporation over an eight-year period (fiscal years 1982-89) as part of its current power development plan. The bulk power generated by the plant will be conveyed to State Electricity Boards in Gujarat, Maharashtra, and Madhya Pradesh States, and to the Electricity Department of the Union Territory of Goa. The plant will be fueled by coal supplied by the nearby Kusmunda I I and Gevra mines. The plant 1 s coal iequirements are expected to total 7.8 million tons annua11y at full project development. Equipment for coal handling and transportation is included under the project. The demand for power in India has consistently been greater than available capacity. The country is presently pursuing an amhitious investment program for the power sector aimed at reducing the yap between power supply and demand. The addition of the project's 1,500 MW by 1988, represer,ting about 13% of regional peak demand, will help avoid power shortages in India's western region towards the end of the decade. Co-financing amounting to $150 million is being provided by the Federal 'Republic of Germany. The IDA credit is for 50 years, including 10 years of grace, and is interest-free, except for a service charge of 3/4 of 1% per annum to cover 1DA 1 s administrative costs. The cred~t will be committed wheri funds are available . • NOTE: IDA credits are denominated in SDRs (Sp~cial Drawing Rights), which are valued on the basis of a "basket" of currencies. The U.S. dollar equivalent of the SDR amount of the IDA credit reflects the exchange rates existing at the time of negotiation of the credit. ,. ~I -1 FORM NO. 1121 (5-76) T EC HN I CAL Dt T A I I PROJECT: COUNTRY: TOTAL COST: Second·Korba Thermal Power India $1,387 million • IDA FINANCING: SDR 325.6 million ($400 million), standard IDA terms OTHER F~NANCING: Government of India loan and equity, $837 million Federa1 Republic of Germany, $150 million IMPLEMENTING ORGANIZATION: The National Thermal Power Corporationt Ltd. 62-63 Nehru Place NTPC Square New De 1hi 110019, India CABLE: THERMPOWER, NEW DELHI TELEX: ND2266 PROJECT DESCRIPTION: The project includes: a) construction of three 500 megawatt generating units at the Korba thermal power station in the State of Madhya Pradesh, together with ancillary equipment and related works, and b) about 1,100 kilometers of associated 400 kilovolt transmission 1ines·. • PROCUREMENT: All equipment financed under the credit will be procured through international competitive bidding. Competing Indian manufacturers will be granted a preference margin of 15% or the current rate of import duty, whichever is less. CONSULTANTS: Total engineering consultar.t requirements are estimated at about 80 man-months. Supervisory services for erection and commissioning of the main equipment such as turbo-alternator units and steam generators will be provided by the manufacturers of the equipment. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 15% 1988 - 0 - • 7771 r. fl ee