Announcement of India Receives One Hundred and Fifty Million Dollars Credit for Power Transmission on January 15, 1976

.world Bank 1818 H Street, N.W.,. Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA News Release No. 76/1 January 1.5, 1976 INDJ:A RECEIVES $150 MILLION CREDIT FOR POWER TRANSMISSION The International Development Association (IDA), an affiliate of the World Bank, has approved a $150 million credit to help finance a power transmission project in India. The project will assist in the eventual development of an integrated power generati.on and transmission system in the country. The World Bank has been providing assistance for power development in India for more than 25 years, and has now made 15 loans and credits totaling $625.5 million for the sector. The major segment of the project forms p8rt of a $509 million program of investment in high voltage power transmission during the period 1976-1979 by the four beneficiary State Electricity Boards (SEBs) -- those of Maharashtra, Gujarat, Bihar and West Bengal -- as • well as load dispatch facilities being installed by the Eastern and Western Regional Electricity Boards. This component will consist of about 2,800 circuit kilometers (km) of 220 kilovolt (kV) overhead trans- mission lines, some of which are designed for later conversion to 400 kV operation; about 15 km of 220 kV and 132 kV underground cables; and equip- ment to increase the aggregate capacity of 30 substations by about 2,700 megavolt-amperes (MVA). Also included in the project are capacitors or synchronous condensers to help improve system operations, and power line carrier communication and telemetering equipment to further 1.mprove existing communication and load dispatch facilities in the States' systems. Another part of the project, for which $30 million of the credit has been allocated, will meet the cost increases incurred under the Third Power Transmission Project approved by IDA in May 1973. This credit helped to finance similar transmission investments by 11 other beneficiaries: the SEBs of Assam, Karnataka, Kerala, Madhya Pradesh, Orissa and Tamil Nadu; the Delhi Electricity Supply Undertaking; the Beas Construction Board; the Southern and Northern Regional Electricity Boards; and the Tata Power Company, a private company in Bombay. A third component of the project will support regional and national system planning studies designed to produce a long-term plan for power devel- opment in India . • The IDA credit is for 50 years, including 10 years of grace, and is interest-free with a 3/4 of 1% service charge to meet IDA's administrative expenses. Note: Money figures are expressed in US dollar equivalents. Form Ne. 1121 (9-75) T E CHN I CAL DAT A • PROJECT: Fourth Power Transmission COUNTRY: India TOTAL COST: $207.3 million IDA FINANCING: $150 million at standard IDA terms OTHER FINANCING: Government of India IMPLEMENTING ORGANIZATIONS: State and Regional Electricity Boards PROJECT DESCRIPTION: The purchase of equipment and materials for trans- mission systems scheduled to be constructed during the period 1976/77-1978/79 (about 2,800 circuit kilometers (km) of 220 kilovolt (kV) overhead transmission lines, about 15 km of 220 kV and 132 kV underground cable, and substation equipment required to increase the capacity of 30 substations • by about 2,700 megavolt-amperes(MVA)) by four State Electricity Boards (SEBs) and two Regional Electricity Boards; the completion of subprojects undertaken by 11 other beneficiaries under a previous IDA credit; and the undertaking of system planning studies by the Central Electricity Authority. PROCUREMENT: All equipment and materials to be financed by IDA will be procured through international competitive bidding. A preference of 15 percent, or the actual import duty, whichever is lower, will be granted to Indian suppliers for the purpose of evaluating international bids. ESTIMATED COMPLETION DATE: December 31, 1979 - 0 - •