Announcement of India Receives Three Hundred Five Million Dollars for Electric Power Development on April 20, 1978

( - IMMEDIATE RELEASE •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BAltK NEWS RELEASE NO. 78/73 IDA NEWS RELEASE NO. 78/59 Apri 1 20, 1978 INDIA RECEIVES $305 MILLION FOR ELECTRIC POWER DEVELOPMENT The World Bank and its affiliate, the International Development Association (IDA), are providing $305 million to assist electric power development i~ India. A World Bank loan of $105 million will help finance the construction of a 500 megawatt thermal power station and associated works in Trombay, in Maharashtra State. An IDA credit of $200 mill ion will be devoted to the con- struction of the first stage, consisting of three 200 megawatt generating units, of the Korba thermal power station in Madhya Pradesh State, which will have an ultimate capacity of 2,100 MW. The two projects are part of the World Bank's efforts to help India meet the growing demand for power. Today's operations bring the total of Bank and IDA assistance for electric power devel- • opment in India to $1,080.5 million . The total installed generating capacity in India 1s about 25,000 megawatts. The demand for power has consistently been greater than available capacity. While per capita demand for electricity has been rising in India, it remains among the lowest in the world at about 140 kilowatt hours per annum. Overall demand is dominated by industry, which accounts for about two-thirds of all electricity sold. Agriculture and irrigation account for another 13% of demand. Growth of consumption has been particularly rapid in the rural areas where more than 80% of India's po~ulation 1 ive. The number of electrified villages grew from just over 3,000 in 1951 to 200,000, or about one-third of all villages in India, by 1976. The number of irrigation pumpsets and tube- wells which have been energized increased from 21,000 in 1951 to about 2.4 million by 1974, An additional 1.2 mill ion are expected to be energized by the end of 1979. $105 Mill ion World Bank Loan for the Trombay Thermal Power Plant The project being implemented by the Tata Electric Companies is part of Maharashtra State's plan to eliminate existing power shortages and to meet the demand which is growing at the rate of 10% per annum. This would be the first 500 megawatt generating unit in India and, as such, it represents a significant technological advance. The project is scheduled to be completed in 1983 at a total estimated cost of $209.4 mill ion. • The Bank loan to the Tata Electric Companies will be guaranteed by the Government of India. It is for 20 years, including five years' grace . It will carry interest at the rate of 7.5% per annum. NOTE: Money figures are expressed in U.S. dollar equivalents.  - 2 - $200 Mill ion IDA Credit for the Korba Thermal Power Plant The $406 mill ion project consists of construction of the first 600 megawatt capacity in the Korba thermal power station, together with ancillary equipment and related works and 400 kV transmission facilities to convey bulk power to Gujarat, Maharashtra and Madhya Pradesh States. • The capacity at Korba is expected to reach 2,100 MW by October 1986. The IDA credit to India is for 50 years, including 10 years of grace. It is interest free except for a service charge of 3/4 of 1% to meet IDA's ad- ministrative costs. The Government of India will relend the proceeds of the credit to the National Thermal Power Corporation Limited, which will implement the project. - 0 - • •  FORM NO. 1121 (5-76) T ECHNI CAL D A T A • PROJECT: COUNTRY: TOTAL COST: Trombay Thermal Power India $209.4 mill ion BANK FINANCING: $105 million loan for 20 years, including five years of grace~ with interest at the rate of 7.5% per annum. OTHER FINANCING: Tata Electric Companies, local fiancial institutions and the Government of Maharashtra • IMPLEMENTING ORGANIZATION: Tata Electric Companies Bombay House Homi Modi Street Bombay 400023, India. PROJECT DESCRIPTION: The project includes the construction at Trombay of a 500 MW power generating unit, together with boiler, electrical and mechanical equipment and associated works . • PROCijREMENT: Except for minor items of equfpment costing $100,000 or less, all equipment financed by the loan wf 11 be procured through international competitive biddin~ (ICB). Indian manufacturers competing under ICB will be granted a preference margin of 15% or the current rate of import duty, whichever is less~ CONSULTANTS: Ebasco Services Inc. of the U.S. has been engaged as review consultants and will assist the principal con- sultants - Tata Consulting Engineers - in the basic engineering and detailed design . • ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 14% 1983 - 0 - FOAM NO. 1121 (5-76) T EC HN I CAL DA T A PROJECT: COUNTRY: TOTAL COST: Korba Thermal Power India $405, 9 mi 11 ion • I DA FI NANC I NG: $200 million credit, standard IPA terms OTHER FINANCING: Government of India IMPLEMENTING ORGANIZATION: The National Thermal Power C9rporation Limited 31~ Kailash, 26 Kasturba, Gan~ht Marg New Delhi - 110001 India PROJECT DESCRIPTION: The project includes the construction of three 200 MW generating units at the Korba thermal power station, in the State of Madhya Pradesh, together with ancillary equipment a~d related works, and about 880 circuit kilometers of associated transmissi9n lin~s. • PROCUREMENT: A11 equipment f i n'""'·1ced under th.e .credit wi 11 be procured through international competitive bidding. Competing Indian manufacturers would be granted a preference margin of 15.% or the current rate of import duty, whichever is less. CONSULTANTS: The Thermal Design Organization of· India's Electricity Authority will function~~ the principal review con- sultant. A retainer consultant with experience in the design of large thermal power stations of 2,000 MW and over will assist. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 13% 1985 - 0 - •