India - Ninth Telecommunications Project

Doemat of The World Bank POR OFFICIAL USE ONLY ai' V.< t '' - Report No. P-4531-IN MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK OF RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN OF $345 MILLION TO THE REPUBLIC OF INDIA FOR THE NINTH TELECOMMUNICATIONS PROJECT April 22, 1987 industry Department E.nergy and Industry Staff This document has a restricttd distribution and may be use by feipients only in thce performance of their official duties, Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit = Indian Rupee (Rs) $1.00 - Rs 13.0 Rs 1.00= $0.77 (The dollar/rupee exchange rate is subject to change. Conversions in the Staff Appraisal Report are made at $1.00 - Rs 13, the approximate rate at the time of negotiations.) UNIT OF MEASURE Metric System ABBREVIATIONS AND ACRONYMS DEL - Direct exchange (telephone) line DOT - Department of Telecommunications GDP - Gross Domestic Product GOI - Government of India ICB - International Competitive Bidding LCB - Local Competitive Bidding LIB - Limited International Bidding MTNL - Mahanagar Telephone Nigam Limited (Bombay/Delhi Telephone Corporation) OECF - Overseas Export Credit Fund of Japan PSE - Public Sector Enterprise UNDP - United Nations Development Program FISCAL YEAR Government, DOT and MTNL: April 1 - March 31  FOR OFICIAL USE ONLY INDIA NINTH TELECOMMUNICATIONS PROJECT LOAN AND PROJECT SUMMARY Borrower: India, acting by its President. Beneficiaries: Department of Telecommunications (DOT) Mahanagar Telephone Nigam Limited (MTNL). Amount: $345 million, equivalent Terms: Repayment over 20 years, including 5 years' grace, at the applicable rate of interest. Onlending Terms: From the Government of India (GOI) to DOT: Standard GOI terms for capital-at-charge (currently 8% per annum with no repayment of principal). From GOI to MTNL: Commercial terms of 15 years, including three years' grace, at not less than 13% per annum. GOI would bear the foreign axchange risk. Financing Plan: IBRD S 345.0 OECF S 60.0 UNDP $ 2.5 GOI/DOT/MTNL $1,642.5 Total $2,050.0 Economic Rate of Return: 20% Staff Appraisal Report: No. 6260-IN, dated April 22, 1987. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPHENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED WAN TO INDIA FOR A NINTH TELECOMUNICATIONS PROJECT 1. The following report on a proposed loan to India for $345 million is submitted for approval. The proposed loan would be at the standard variable interest rate, with a maturity of 20 years, including five years' grace. Most of the loan (about $247 million) would be channelled to the Department of Telecommunications (DOT) as part of the Government of India's (GOI) capital-at-charge, on which DOT pays a dividend at a rate fixed by GOI, currently 8% p.a. The balance of the loan (about $98 nillion) would be relent to the Mahanagar Telephone Nigam Limited (MTNL) on commercial terms of 15 years, including three years' grace, at not less than 13% p.a. GOI would bear the foreign exchange and interest rate risks. Background 2. !-ith 3.2 million connected direct exchange lines (DELs) as of March 31, 1986, India's average telephone density of 0.4 DELs per 100 population is among the lowest in Asia. Lines in service met 75% of expressed demand (DELs plus registered applicants), down from 85% in 1980, while the average waiting time increased from about 2-1/2 years to 3-1/2 years, as the 7.5% p.a. network growth failed to match the 10% p.a. demand growta. In almost all categories, the quality of service is inadequate, with high call failure rates and subscriber complaints. 3. The poor state of telecommunications in India is due primarily to: (a) severe underinvestment in the sector, averaging only 0.2% of GDP since FY74, whereas 0.4%-0.7% is generally needed for rapid development; (b) GOI's hitherto self-reliant and public-sector-monopoly oriented industrial and technological development policies, making DOT's progress largely contingent upon that of domestic equipment manufacturers; and (c) DOT's organizational culture, with regulations, centralization and procedures unsuited for a high-technology sector, and poor staff motivation * resulting from low salaries, lack of performance incentives, and promotion by seniority, which frustrate DOT's many competent and conscientious staff. 4. In the past few years, the sector's problems and their causes, and the implications for India's overall economic development, have received considerable attention in India. In response, a series of technological, institutional and investment measures are being undertaken or planned, to: (a) raise public confidence, by improving the quality of service; (b) slow the growth of unsatisfied demand by accelerating network expansion; (c) extend telecommunications in rural areas, to meet economic, medical, and social objectives; (d) introduce new services for business users; and (e) raise off-budget the necessary financial resources for (a) to (d) above, including through sale of bonds.  -2- 5. During the Sixth Plan (1980-85), DOT achieved only 65% of its targets for incremental telephone exchange capacity and DELs, and 45%-50% for long-distance facilities. In preparationi for the Seventh Plan, an interagency committee estims-ed that an investment of $11.2 billion (ir. constant 1985 prices) was required to reduce waiting time for a telephone line to within one year, and to achieve satisfactory service quality. However, given GOI's overall budget constraints, and reservations about DOT's capacity to implement that large a program, DOT is expected to be allowed a total investment of only $4.9 biliion, which would nevertheless increase the percentage of public sector investment in the sector from 2.5% to 3.1%, and raise the network growth rate to 8.7% p.a. The program would be financed about 50% from internal DOT and MTNL cash generation, 20% from the sale of MTNL bonds, and 15% each from foreign and GOI loans. 6. In an important institutional reform, DOT was separated from the Department of Posts in 1985. MTNL was established in April 1986 as a public sector corporation to operate the Bombay and Delhi networks. Most telecommunications equipment is manufactured domestically by three public sector enterprises (PSE's). To promote competition and greater reliability of supply, GOI now permits the manufacture of telecommunications equipment by the private sector for subscriber equipment and cables, and joint (51% public) sector for all equipment, and DOT has begun to adjust its domestic procurement practices accordingly. Project Objectives 7. The project, which represents about 40% of DOT's five-year investment program, would help meet the growing demand for telecommunications services and improve the quality of these services, through the expansion and upgrading of the telephone and telex networks in Bombay, Delhi, Madras and Calcutta (which contain about 34% of the country's DELs and generate about 47% of total revenues), and the long-distance links between them. The effective operation of the system in these high-traffic areas is critical for the viability of the entire domestic network; furthermore, the improved efficiency and profitability resulting from these investments will ease the overall financial constraints on the sector. Quality of service will be improved under the project through the introduction of new digital transmission and switching equipment and of a long-distance network management system, and close monitoring of quality of service indicators. Project Description 8. The project comprises all the investments in the four metropolitan cities during the Seventh Plan, plus the new long distance links between them, a long distance network management system, a training component and consultancy services. The main project components are: (a) Installation of local and long distance transmission facilities (including optical fiber and digital microwave  -3- systems), within and between the four metropolitan networks of Bombay, Calcutta, Delhi and Madras, together with local and long distance telephone and telex switching facilities and associated urban cable networks, subscriber plant and buildings, to increase telephone exchange capacity in the four metropolitan areas by about 1,000,000 local lines and 50,000 trunks, and telex exchange capacity by about 14,000 local and 1,000 transit lines. (b) (i) Modernization and expansion of domestic satellite earth station networks; (ii) Establishment of a packet switched data network among the four metropolitan cities and other major cities and industrial areas; (iii) Establishment of a long distance network management system including appropriate facilities, to improve traffic flows by locating and bypassing or eliminating bottlenecks; and (iv) Introduction of automatic message accounting facilities in the four metropolitan networks, to permit detailed billing of subscriber trunk dialled calls. (c) Support, together with UNDP, of a program for upgrading five regional telecommunications training centers and DOT/MTNL's manpower development. (d) Provision of consultants' services for institutional improvements in DOT (delegation of authority to field units, and review of the planning and budgetting system), and for design of (b)(iii) above. 9. Total project cost, including contingencies but excluding $211 million in taxes and duties, is about $1,839 million, of which about $418 million and $411 million (totalling 45%) are direct and indirect foreign exchange costs, respectively. The cost breakdown and financing plan are shown in Schedule A. Amounts and methods of procurement and disbursements, as well as the disbursement schedule are shown in Schedule B. A timetable of key project processing events, and the status of Bank Group operations in India are given in Schedules C and D, respectively. A map (IBRD No. 19634-IN) showing the project investments is also attached. The staff appraisal report (No. 6260-IN) dated April 9, 1987 is being distributed separately. Rationale for Bank Involvement 10. Through its participation in the project, the Bank would support GOI's efforts to address sectoral and project related issues, jy  -4- (i) helping DOT/MTNL accelerate program implementation, by ensuring early procurement actions on the project, and more streamlined DOT/MTNL procurement procedures; (ii) supporting increased competition in the domestic procurement of telecommunications equipment--an action plan for this has been agreed upon; (iii) supporting measures for the institutional development of both DOT and MTNL; and (iv) reviewing specific investment programs to ensure that they are properly balanced. Agreed Actions 11. The following actions were agreed with Government, DOT and MTNL: (a) DOT and MTNL would: (i) continue to take all action necessary to expand competition in domestic procurement, in accordance with an agreed action plan; and (ii) use commercial contracts for single source purchases from PSEs effective by April 1, 1987; (b) for project studies (para 8(d)), DOT would appoint consultants by September 30, 1987, with terms of reference acceptable to the Bank, exchange views with the Bank on the consultants' findings, and take appropriate action in accordance with a timetable agreed with the Bank; (c) DOT and MTNL would review periodically with the Bank their respective project implementation, service quality, productivity anc financial performance, their future targets and actions proposed to achieve them, and then take all measures necessary to achieve these targets; (d) MTNL would review with the Bank the findings and recommendations of its institutional consultants and then take actions on the recommendation in accordance with an appropriate timetable; (e) the audit reports on DOT and MTNL financial statements by an independent aud'tor acceptable to the Bank would be provided to the Bank, within nine months after the close of each fiscal year; (f) the rate of return on the revalued assets of DOT and MTNL (consolidated) would not fall below 11% p.a.; and (g) Bank funds (currently estimated at $98 million equivalent) *ould be onlent to MTNL under a subsidiary loan agreement. Execution of the agreement between GOI and MTNL would be a condition of loan effectiveness. Project Justification and Benefits 12. Improved telecommunications are vital to support India's new market-oriented liberalization policies, as the efficient functioning of markets depends primarily on information flow. In this connection, telecommunications are particularly essential for (a) export development, which require reliable international telephone and telex, as well as good connections to domestic suppliers, and (b) attracting foreign investment, as reliable telecommunications is one of the main determinants of where international firms invest. Improved telecommunications are equally critical for India's emphasis on (a) rural development, especially for providing essential support services, marketing local produce, and substituting for expensive transportation, and (b) decentralization of industry, as the absence of even basic telephone services makes it difficult to attract entrepreneurs and technical staff to the rural areas,  -5- and imposes heavy cost on production there. By focusing on the key metropolitan cities and the long-distance network, the project will relieve congestion, assist the development of these major centers and generate high profits that will permit cross-subsidization of other economically and socially important parts of the network. The institutional-strengthening aspects will help maximize the benefits from the recent separation of Posts l and Telecommunications, and the establishment of MTNL. 13. The projected financial and economic rates of return to the entire investment program are 15% and 20% p.a., respectively. (The rates of return for the project will be higher since the project is located in the major revenue-generating areas of the network.) Sensitivity analysis indicates that in the worst case scenario (20% cost increase, 20% benefit decrease), the economic rate of return remains satisfactory at 12%. Project Risks 14. One risk is that DOT and MTNL will have difficulties with the introduction of the new digital and optical fiber technologies. The project training component is designed inter alia to provide support for the installation and operation of these new technologies, and DOT has high-quality technical staff. A second risk is that the institutional and policy reforms will only be implemented very slowly. However, the new DOT and MTNL managements are committed to the reforms, and other involved GOI agencies are supportive. External consultants will assist in formulating institutional improvement measures, and the Bank will monitor carefully implementation of the institutional action program. A final risk is that the domestic telecommunications equipment for the project would be inadequate in quantity and quality. The expansion of competition in DOT's domestic procurement, and the introduction of commercial contracts should help in this regard. The Bank will closely monitor domestic equipment manufacture and has indicated that further Bank lending to the telecommunications sector beyond the proposed project would be contingent on continued satisfactory progress in this area. Recommendations 15. I am satisfied that the proposed loan would comply with the Articles of Agreement of the Bank and recommend that the Executive Directors approve the proposed loan. Barber B. Conable President May 12, 1987  SCHEDULE A Estimated Cost: ($ Million) Item Local Foreign Total Local Network 848 120 968 t Telex 91 -- 91 Long Distance Switching 99 - 99 Transmission 152 170 322 Satellite Services 29 23 52 Data Network, Message Accounting 31 55 86 Training and Consultants 59 10 68 Total Base Cost 1,308 378 1,686 Physical Contingencies 65 19 84 Price Contingencies 259 21 280 Total Project Cost 1,632a/ 418 2,050 Financing Plan: Source IBRD 345 345 OECF - 60 60 UNDP - 2.5 2.5 GO'/DOT/MTNL 1,632 10.5 1,642.5 Total Financing 1,632 418.0 2,050.0 a/ Includes estimated $411 million in indirect foreign exchange and $211 million in taxes and duties.  -7- SCHEDULE B Page 1 of 2 Procurement Table t$ Milli`on_)aW/ Item ICB LIB LCB Negot. b/ Other Total Local switching -- 68.0c/ 551.2 60.0 di 679.2 Cable networks 73.4 (73.4) 85.0 338.6 -- 497.0 (73.4) Telex 110.6 -- 110.6 Local transmission 83.3 (83.3) -- -- -- 83.3 (83.3) Long distance switching 120.3 -- 120.3 Long distance transmission 94.4 (94.4) -- -- -- 94.4 (94.4) Satellite services 25.4 (25.4) -- _ _ 25.4 (25.4) Data network 16.6 (16.6) -- - 16.6 (16.6) Network manage- ment system 11.1 (11.1) -- -- -- __ 11.1 (11.1) Automatic message accounting system 33.1 (33.1) -- -- -- __ 33.1 (33.1) Training -- 8.0 (5.5) -- -- -- 8.0 (5.5) Consultants -- -- -- -- 2.2 (2.2) e/ 2.2 (2.2) Installation and civil works 368.8 ft 368.8 Subtotal 337.3 (337.3) 8.0 (5.5) 153.0 1,120.7 431.0 (2.2) 2,050.0(345.0) Percent of project 16.5 0.4 7.5 54.6 21.0 100 Percent of Bank loan (97.8) (1.6) (0.6) (100) Note: Figures in parentheses represent the amounts financed by the proposed Bank loan. a/ Including contingencies. b/ Contracts with public sector enterprises (ITI, HCL and MTL). c/ Chiefly for subscriber equipment. d/ Financed by OECF and procured according to their guidelines. e/ Bank Guidelines for selection of consultants. f/ Force account or private contractors following LCB or direct negotiation.  8 SCHEDULE B Page 2 of 2 Disbursements Amount of the Loan Allocated (Expressed % of Expenditures Category in Dollar Equivalent) to be Financed (1) Cables, and local and 239,000,000 ) 100% of foreign long distance ) expenditures and transmission equipment ) 100% of local ex- ) penditures (ex- ) factory cost) (2) Satellite earth stations; 78,000,000 ) computer and data network ) equipment and network ) management equipment ) (3) Training equipment 5,000,000 ) (4) Consultants' service 2,000,000 100% (5) Unallocated 2!,000,000 TOTAL 345,000,000 Estimated Disbursements IBRD FY: FY87 FY88 FY89 FY90 FY91 FY92 Annual 7.0 62.0 100.0 93.0 59.0 24.0 Cumulative 7.0 69.0 169.0 262.0 321.0 345.0  SCHEDULE C Page 1 of 1 Timetable of Key Events (a) Time taken to prepare the project: Two years. (b) Prepared by: Department of Telecommunications, GOI. (c) First project mission: January 1984. (d) Departure of appraisal missions: May 1985 and January 1986. (e) Completion of negotitations: December 1986. (f) Planned date of effectiveness: August 12, 1987. List of Relevant PCR's and PPAR's: Board Report Document Date of Credit/ No. No. Title Loan Signature 2783 SecM79-908 India - Fifth Telecommunications 06/25/73 Project 'CREDIT 430) 5525 SecM85-305 India - Sixth Telecommunications 07/22/76 Priject (LOAN 1313) (No PPAR)  -10- SCHEDULE D Page 1 of 4 THE STATUS OF BANK GROUP OPERATIONS IN INDIA A. 'TATEMENT OF BANK LOANS AND IDA CREDITS (As of September 30, 1986) US$ million Loan or Fiscal (Net of Cancellations) Credit Year of No. Approval Purpose Bank IDA 1/ Undisbursed 21 59 Loans/ 2,858.5 - - 113 Credits fully disbursed - 6,987.6 - 1251-IN 1976 Andhra Pradesh Irrigation 145.0 - 8.55 680-IN 1977 Kerala Agric. Development - 30.0 0.52 788-IN 1978 Karnataka Irrig.tion - 117.6 0.04 793-IN 1978 Korba Thermal Power - 200.0 4.41 806-IN 1978 Jammu-Kashmir Horticulture - 14.0 7.58 842-IN 1979 Bombay Water Supply II - 196.0 62.89 848-IN 1979 Punjab Water Supply & Sewerage - 38.0 2.79 855-IN 1979 National Agrict:ltural Research - 27.0 7.53 1648-IN 1q79 Ramagundam Thermal Power 50.0 - 32.83 963-IN 1980 Inland Fisheries - 20.0 9.36 981-IN 1980 Population II - 46.0 11.44 1003-IN 1980 Tamil Nadu Nutrition - 32.0 9.18 1011-IN 1980 Cujarat Irrigation II - 175.0 51.39 1012-IN 1980 Cashewnut - 22.0 10.75 1027-IN 1980 SingrauLi Thermal II - 300.0 64.90 1028-IN 1980 Kerala Agricultural Extension - 10.0 3.23 1033-IN 1980 Calcutta Urban Transport - 56.0 11.43 1034-IN 1980 Karnataka Sericulture - 54.0 15.15 1046-IN 1980 Rajasthan Water Supply & Sewerage - 80.0 29.39 1053-IN 1980 Farakka Thermal Power - 225.0 35.83 1887-IN 1980 Farakka Thermal Power 25.0 - 25.00 1897-IN 1981 Kandi Watershed and Area Development 30.0 - 11.93 1072-IN 1981 Bihar Rural Roads - 35.0 6.87 1078-IN 1981 Mahanadi Barrages - 83.0 27.81 1082-IN 1981 Madras Urban Development II - 42.0 13.99 1108-IN 1981 M.P. Medium Irrigation - 140.0 58.08 1112-IN 19811 Telecommunications VIII - 301.2 2.60 1116-IN 1981 Karnataka Tank Irrigation - 54.0 23.90 1125-IN 1981 Hazira Fertilizer Project - 399.1 41.92 1135-IN g981 Maharashtra Agricultural Ext. - 23.0 3.18 1137-tN 1981 Tamil Nadu Agricultural Ext. - 28.0 10.41 1138-IN 1981 M.P. Agricultural Ext. II - 37.0 23.14 1146-IN 1981 National Cooperative - DeveLopment Corp. II - 125.0 42.06 1172-TY 1982 Korba Thermal Power Project II - 400.0 201.31 1177-IN 1982 Madhya Pradesh .aajor Irrigation - 220.0 124.41 1178-IN 198. West Bengal Social Forestry - 29.0 18.84 1185-Il 1982 Kanpur Urban Development 25.0 11.84 2051-tN 1982 IZICI Xlv 150.0 - 3.63  - 11 - SCHEDULE D Page 2 of 4 US$ million Loan or Fiscal (Net of Cancellations) Credit Year of No. Approval Purpose Bank IDA 1/ Undisbursed 2/ 2076-IN 1982 Ramagundam Thermal Power II 300.0 - 222.48 1219-IN 1982 Andhra Pradesh Agricultural Ext. - 6.0 3.80 2123-IN 1982 Refineries Rationalization 200.0 49.95 2165-IN 1982 Rural Electrification III 304.5 - 138.31 1269-IN 1982 Kallada Irrigation - 60.0 15.15 2186-IN 1982 Kallada Irrigati.n 20.3 - 20.00 1280-IN 1983 Gujarat Water Supply - 72.0 59.30 1286-IN 1983 Jammu/Kashmir and Haryana Social Forestry - 33.0 19.11 1288-tN 1983 Chambal Madhya Pradesh Irrigation II - 31.0 14.28 1289-IN 1983 Subernarekha Irrigation - 127.0 91.88 2205-IN 1983 Krishna-Godavari Exploration 165.5 - 81.04 1299-IN 1983 Railways Modernization & Maintenance II - 200.0 134.61 2210-IN 1983 Railvrays Modernization & Maintenance II 200.0 - 197.04 2241-IN 1983 South Bassein Gas Development 139.3 - 114.86 1319-IN 1983 Haryana Irrigation II - 150.0 85.11 1332-IN 1983 U.P. Public Tubewells II - 101.0 76.25 1356-IN 1983 Upper Indravati Hydro Power - 170.0 136.76 2278-IN 1983 Upper Indravati Hydro Power 156.4 - 156.01 1369-IN 1983 Calcutta Urban Development III - 147.0 131.57 2283-IN 1983 Central Power Transmission 250.7 - 250.07 2295-IN 1983 Himalayan Watershed Management 46.2 - 43.42 1383-IN 1983 Maharashtra Water Utilization - 32.0 20.52 2308-IN 1983 Maharashtra Water Utilization 22.7 - 22.64 2329-IN 1983 Madhya Pradesh Urban 24.1 - 22.47 1397-IN 1984 Orissa Irrigation II - 105.0 59.99 1424-IN 1984 Rainfed Areas Watershed Dev. - 31.0 35.17 1426-IN 1984 Population III - 70.0 65.94 1432-IN 1984 Karnacaka Social Forestry - 27.0 21.19 2387-IN 1984 Nhava Sheva Port 250.0 - 234.52 2393-IN 1984 Dudhichua Coal 151.0 - 131.33 2403-IN 1984 Cambay Basin Petroleum 242.5 - 218.84 2415-IN 1984 Madhya Pradesh Fertilizer 203.6 - 141.32 1454-IN 1984 Tamil Nadu Water Supply - 36.5 42.20 SF-12-IN 1984 Tamil Nadu Water Supply - 36.5 42.83 1468-IN 1984 Periyar Vaigai II Irrigation - 17.5 5.53 SF-16-IN 1984 Periyar Vaigai II Irrigation - 17.5 20.14 1483-IN 1984 Upper Canga Irrigation - 125.0 134.02 1496-IN 1984 Gujarat Medium Irrigation - 172.0 146.99 2416-IN 1984 Indira Sarovar Hydroelectric 157.4 - 153.71 SF-20-IN 1984 Indira Sarovar Hydroelectric - 129.8 147.48 2417-IN 1984 Railways Electrification 280.7 - 268.11 2442-IN 1984 Farakka II Thermal Power 300.8 - 295.24 2452-IN 1984 Fourth Trombay Thermal Power 135.4 - 125.98 1502-IN 1984 National Cooperative Development Corporation III - 220.0 211.87 1514-IN 1985 Kerala SociaL Forestry - 31.8 33.33 1523-IN 1985 National Agric. Extension I - 39.1 44.95  - 12 - SCHEDULE D Page 3 of 4 USS million Loan or Fiscal (Net of Cancellations) Credit Year of No. Approval Purpose Bank IDA lt Undisbursed 2/ 1544-IN 1985 Bombay Urban Development - 138.0 145.11 2497-IN 1985 Narmada (Gujarat) Dam and Power 200.0 - 200.uO 1552-IN 1985 Narmada (Gujarat) Dam and Power - 100.0 103.93 1553-IN 1985 Narmada (Gujarat) Canal - 150.0 170.82 1569-IN 1985 Second National Agricultural Ext. - 49.0 53.65 1611-IN 1985 National Social Forestry - 165.0 184.67 1613-IN 1985 Indira Sarovar Hydroelectric - 13.2 15.05 2498-IN 1985 Jharia Coking Coal 248.0 - 248.00 2505-tN 1985 Maharashtra Petrochemical 300.0 - 290.12 2534-IN 1985 Second National Highway 200.0 - 2lno.00 2544-IN 1985 Chandrapur Thermal Power 300.0 - 275.37 2555-IN 1985 Rihand Power Transmission 250.0 - 248.14 2582-IN 1985 Kerala Power 176.0 - 175.97 1619-IN 1986 West Bengal Minor Irrigation - 99.0 122.56 1621-IN 1986 Maharashtra Composite Irrigation - 160.0 198.26 1622-IN 1986 Kerala Water Supply and Sanitation - 41.0 51.81 1623-IN 1986 West Bengal Population - 51.0 59.32 1631-IN 1986 National Agricultural Research II - 72.1 83.96 2629-IN 1986 Industrial Export Dev. Finance 90.0 - 90.00 2630-IN 1986 ICICI-Indus. Exp. Dev. Finance 160.0 - 160.00 1643-IN 1986 Gujarat Urban* - 62.0 70.99 2653-IN 1986 NABARD I 375.0 - 375.00 2660-IN 1986 Cement Industry* 165.0 - 165.00 2661-IN 1986 ICICI - Cement Industry* 35.0 - 35.00 1665-IN 1986 Andhra Pradesh II Irrigation* - 140.0 154.71 2662-IN 1986 Andhra Pradesh II Irrigation* 131.0 - 131.00 2674-IN 1986 Combined Cycle Pover* 485.0 - 485.00 2729-IN 1986 Cooperative Fertilizer* 150.2 - 150.20 2730-IN 1986 Cooperative Fertilizer* 152.0 - 152.00 Total 10,227.8 13,999.5 of which has been repaid 1,458.6 276.8 Total now outstanding 8,769.2 13,722.7 Amount Sold 133.8 of which has been repaid 133.8 - - Total now held by Bank and IDA 3/ 8.769.2 13,722.7 Total undisbursed (excluding *) 5,231.88 3,937.31 11 IDA Credit amounts for SDR-denominated Credits are expressed in terms of their US dollar equivalents, as established at the time of Credit negotiations and as subsequently presented to the Board. 2/ Undisbursed amounts for effective SDR-denominated IDA Credits are derived from cumulative disbursements converted to their US dollar equivalents at the SDR/US dollar exchange rate in effect on March 31, 1986. 3/ Prior to exchange adjustment. * Not yet effective.  - 13 - SCHEDULE D Page 4 of 4 B. STATEMENT OF IFC INVESTMENTS (As of September 30, 1986) Fiscal Amount (US$ million) Year Company Loan Equity Total 1959 Republic Forge Company Ltd. 1.5 - 1.5 1959 Kirloskar Oil Engines Ltd. 0.8 - 0.8 * 1960 Assam Sillimanite Ltd. 1.4 - 1.4 1961 K.S.B. Pumps Ltd. 0.2 - 0.2 1963-66 Precision Bearings India Ltd. 0.6 0.4 1.0 1964 Fort G'oster Industries Ltd. 0.8 0.4 1.2 1964-75-79 Mahindra Ugine Steel Co. Ltd. 11.8 1.3 13.1 1964 Lakshmi Machine Works Ltd. 1.0 0.3 1.3 1967 Jayshree Chemicals Ltd. 1.1 0.1 1.2 1967 Indian Explosives Ltd. 8.6 2.9 i .5 1969-70 Zuari Agro-Chemicals Ltd. 15.1 3.8 18.9 1976-87 Escorts Limited 15.2 - 15.2 1978 Housing Development Finance Corp. 4.0 1.2 5.2 1986 Bajaj Tempo Limited 29.3 - 29.3 1980 Deepak Fertilizer and Petrochemicals Corporation Ltd. 7.5 1.2 8.7 1981 Coromandel Fertilizers Limited 15.9 - 15.9 1981-86 Tata Iron and Steel Company Ltd. 50.4 - 50.4 1981 Mahindra, Mahindra Limited 15.0 - 15.0 1981 Nagarjuna Coated Tubes Ltd. 2.9 0.2 3.1 1981-86 Nagarjuna Signode Limited 2.3 0.3 2.6 1981 Nagarjuna Steels Limited 1.5 0.2 1.7 1982 Ashok Leyland Limited 28.0 - 28.0 1982 The Bombay Dyeing and Manufacturing Co. Ltd. 18.8 - 18.8 1986 The Great Eastern Shipping Company Ltd. 8.0 2.0 10.0 1982 Bharat Forge Company Ltd. 15.8 - 15.8 1982 The Indian Rayon Corp. Ltd. 8.1 - 8.1 1984-86 The Gwalior Rayon Silk Manu- facturing (Weaving) Co. Ltd. 15.9 - 15.9 1987 The Gujarat Rural Housing Finance Corp. - 0.2 0.2 * 1985 Bihar Sponge 13.7 O.8 14.5 1985 Bajaj Auto Ltd. 23.5 23.5 1985 Modi Cement 12.9 - 12.9 1985 India Lease Development Ltd. 5.0 0.4 5.4 1986 Larsen and Toubro Ltd. 20.6 - 20.6 1986 India Equipment Leasing Ltd. 2.5 0.4 2.9 1987 Gujarat Fusion Glass Ltd. 7.5 - 7.5 1987 Hero Honda Motors Ltd. 7.5 - 7.5 1987 Wimco Limited 4.7 - 4.7 TOTAL GROSS COMMITMENTS 379.4 16.1 395.5 Less: Cancellations, Terminations, Repayments and Sales 201.3 8.1 205.1 Now Held 178.4 8.0 186.4 Undisbursed 114.6 3.5 118.1 ====2 ===, =====  5 / - a - A w 7- PATHAZKQO-t 5~~~~,. (- t - 80c9 ______ ~~~~~~~~~~~~~~~~AMIZTTSA ' UJUlLUNDUR q CHAD GARH 9 0 30' . *HFD A 9MAI ? PAKISTAN N / J / \s >\ ~~~~MU7AFFARNAGAR ' j , oew DEtH,RADAt~mem MOADALA) '\AIGA9H SHA4HJAHANPUdN. 4...,.% ( ^s 0 ,' AIWARI \- - xS~~~~~~~~~~~~~~~~~~ITAPUR \vx>jgsUA K ~~~~k.\r%.#L%.. >1 ~~~~~~~~~~tCKBHTA JAiPUR A ~~~~ . ~ tUCKNOW F.oAIZABAI)DXU -~-.- - S~~~~~~~~~~~.-K *- *-'U --'K S. . joD ~ ~ ~ GWLORAPUR -;_O BtHAR A_) } - t 1 * } / I / VARANASI tGAYA \ PAk BANGLADESH AMMECABAD . .0BA'4SUTTARA I .. UDAIPUR P~~~~~~~~~~5 A KA*DURt W /OCHITTARGAR1, 1 I/ .' ! RH/ADUNAGARPI'R I /CtORAAIH -AR ASANSOI - ._, NDRANAGARA RATLARA 1, S zUR '7AS l \ o i t / < O D A 9 / ,/ 9 /; Iji .A- DA  \ WIRAI snl ft{ - -; / KKAM9PUC f(W \HAVNAGAO.9 K9OsR GAt / S ~~~BROACH /Nr// NAGPU; RAIPA4R RI DHtJL9 BHUSAWAD - - - - - - - - | / NASzK / / \~~~~~~~~~~~~~~~ AURANGABAD ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~ MIAES4A THANA, / gADItA~~~~~~~~BAD 1t N o mbay*& w dAHMODNAGAR I PUNt S IATUR (iABD Ut J \ 8 f \ ' * t X Z j tW2IANAGA~~~~~~~~~~RAM SATARA SHOLAPUR-- YDERABAD VISHAKHAPATNAM I 'll KARAD KOtHAPUR / KOQA -TAOFPALUGtJA I% t FBLGAUM / PAisJ4Hu~~~Btl -_ t OGOtE ; \ DAVANGERE j | NEIICORE ,t DASHE ~~~~~~~~~INDIA tt% %\ 1 I titoAto E4zv---- -~ --dros NINTH TELECOMMUNICATIONS PROJECT COAXIAL, MICROWAVE, AND OPTICAL FIBER SYSTEMS W MYSORE ~~~VILtUPURAMptPtCFR I SALEM o^t / UDDALORE r Die Ud P (CAUCUT)BASA Q, ,-/itt M U U r COIMBATDORF KUMBHAKtAM MAYURAM Exist.ng CaM. Pkrened . MAG/ATPRATCTCogrnt CsbAe I Wide gwid *? T R t C H U R < ." TANJ'R THIR LNA RUR ~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ M k r o w c R r ldM w o W ido e od ........--- *CcM FO t-motsoro Bowdoiem AttEPPEY 1i)V1RUDHfANAGAR ( Qftot4 0 I~~~ ~~~ ~ ~~~~~~~OD 200 300 Miles 100 2150 31N*00 K5 Ki SRI LANKA De so wale comidwaie. soe mkce mede fodociiMes Jitsling ,id der conri.on) could sop be ndudcd in the map. rVV' %no, T.amWO ,a..7 ne bbafl * r.r. - on Co W .750 9 , _, . ' o .