Announcement of World Bank Supports Five Hundred Million US Dollars Power Project in India on May 12, 1983

.world Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 83/80 CONTACT: Hugh Blackman IDA NEWS RELEASE NO. 83/72 (202) 477-3573 May 12, 1983 WORLD BANK SUPPORTS $500 MILLION POWER PROJECT IN INDIA A hydro-electric power plant will be 'built in eastern India with the help of a loan of $156.4 million from the International Bank for Reconstruction and Development (IBRD) and a credit of SDR 156 million ($170 million) from the International Development Association (IDA). IDA is the concessionary lending affiliate of the World Bank. The $506.7 million project is expected to increase the power generating capacity in the State of Orissa by about 600 megawatts (MW) to a total of over 2,000 MW by 1990. This would help reduce power shortages that are common in the eastern region of India. The power station will consist of four 150-MW turbo-generator units, the largest that can be transported t:o the Upper Indravati River in the Godavari basine In addition, a 110-square kilometer reservoir, four dams, and eight dykes will be constr~cted. Roads and bridges, as well as power, water, and sewerage facilities will also be provided. Waters from the Indravati river will be directed into the Hati river in the Mahaaadi basin, providing water to irrigate about 109,000 hectares • (270,000 acres) of cultivable land, for which no other feasible irrigation source exists. The Government of Orissa will provide $180.3 million toward project costs. The IBRD loan is for 20 years, including five years of grace, at an annual rate linked to the cost of Bank borrowings. The loan also carries an annual commitment charge of 0.75% on undisbursed balances and a front-end fee of 0.25% on the amount of the loan. The IDA credit is for 50 years, including 10 years of grace; it carries no interest but has a small annual service charge (0.5% on the undisbursed balances of the credit and 0.75% on tt~ disbursed balances). NOTE: Money figures are expressed in U.S. dollar equivalents. ,