Announcement of India Boosts Electrical Power in Maharashtra on June 19, 1989

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.* Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 89/92 Contact: Leandro V. Coronel (202) 477-3641 INDIA BOOSTS ELECTRICAL POWER IN MAHARASHTRA WASHINGTON, June 19, 1989 -- Maharashtra, India's most industrialized state, will benefit from a project to boost the electric-power supply in the western part of the country. A $400 million World Bank loan will partially finance the project. The seven-year project comprises construction of a 1,000 megawatt addition to the Koyna hydroelectric power plant and repairs to the Koyna River dam; expansion of Maharashtra power transmission and distribution system; and stregthening of the Maharashtra State Electricity Board's management-information system and finances. The addition to the Koyna hydrostation and improvements in the transmission and distribution systems will help meet demand during peak periods and provide a more reliable power supply. Maharashtra and the whole western region have been experiencing electrical-power shortages. The project represents the least-cost development program designed to meet most of the region's power needs by the year 2000. Consultant and training services and equipment and programs will be provided to the Maharashtra State Electricity Board to help implement the project. Other funding for the $1.344 billion project will be provided by the Central Government, the Government of Maharashtra and the Maharashtra State Electricity Board (totaling $794 million) and other financiers ($150 million). The World Bank loan is for 20 years, including five years of grace, with a variable interest rate, currently 7.65 percent, linked to the cost of the bank's borrowings. It also carries an annual commitment charge of 0.75 percent on the undisbursed balance. NOTE: Money figures are expressed in U.S. dollar equivalents.