Announcement of India Second Maharashtra Power Project on June 29, 1992

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. 92/104 Contact: Pastor Sison Tel: (202) 458-0344 INDIA: SECOND MAHARASHTRA POWER PROJECT The following is information on a project approved by the World Bank's Board. DATE: June 29, 1992 WORLD BANK GROUP SUPPORT: World Bank loan: $350 million. The World Bank loan is for 20 years, including five years of grace, with a variable interest rate, currently 7.73 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.25 percent on the undisbursed balance. TOTAL COST: $1.2 billion OTHER FINANCING: Government of Maharashtra, $305 million; Export credits, $200 million; Maharashtra State Electricity Board, $369 million IMPLEMENTING AGENCY: MSEB ESTIMATED COMPLETION DATE: 1998 PROJECT DESCRIPTION: The objectives of the Second Maharashtra Power Project are to: (a) support operational efficiency improvements in the power sector; (b) improve internal and external resource mobilization; and (c) promote insti- tutional reforms, including the enhancement of the role of the private sector. The project includes: (a) construction of the last stage of the Chandrapur Thermal Power Station by the addition of a 500 megawatt, coal-fired unit; (b) construction of a 500 kilovolt, 1,500 megawatt HVDC line from Chandrapur to Padghe, near Bombay, as well as the related terminal stations; (c) implemen- tation of an accelerated distribution reinforcement program aimed at reducing losses in selected areas; and (d) consulting services in: load research and preparation of electricity demand management measures; development of MSEB's environmental management capabilities at the corporate level; preparation of private power projects in Maharashtra; and institutional review of the power sector in Maharashtra.