Announcement of World Bank and IDA Approve Financing of Power Project in India on June 30, 1980

~ - " " , FOR IMMEDIATE RELEASE~ · eWorldBank ·18'18 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 80/135 June 30, 1980 IDA NEWS RELEASE NO. 80/110 WORLD BANK AND IDA APPROVE FINANCING OF POWER PROJECT IN INDIA The World Bank and its affi 1 iate, the International Development Association (IDA), today announced the approval of a loan and a credit totaling $250 mill ion to assist India in increasing its electric power generating capacity. The proceeds of an IDA credit of $225 million and a \vorld Bank loan of $25 mill ion wi 11 help finance the construction of the three 200-megawatt (MW) generating units at the Farakka thermal power station in the State of West Bengal. The project also includes the tonstruction of 410 kilometers of 400-kilovolt transmission lines and a training simulator. The $499.4 mill ion project rep- resents the first stage of the fourth large-scale coal.-fired thermal develop- ment in India and is scheduled for completion by March 1986. The National Thermal Power Corporation Limited, a public entity established in 1975, will implement the project. • Although per capita consumption of electricity has been r1s1ng in India, it remains among the lowest in thP. world at about 140 kwh per annum. As a result of accelerated agricultural development program, there has b~en a marked growth of power consumption in the rural areas where more than 80% of India's population live. The number of electrified villages in India, for example, grew from just over 3,000 in 1950 to some 230,000, or over one-third of all the villages by March 1979. In order to cope with the persistent inadequacy of power supply to rneet the growing demand--the Government of India has undertaken to construct large centrally-owned generating stations at coal fields and associated high vo 1ta ge t ran s mi s s i on 1 i ne s . These gene r a t i n g s tat i on s , i nc 1ud i ng the Fa r a k ka plant, are designed to add on new power generating capacity effectively within the shortest period of time. They will be integrated in the future national power systems and will supplement power supply in bulk to the beneficiary states. The World Bank loan is repayable in 20 years, including five years of grace at an annual interest rate of 8.25%. The IDA credit is for 50 years, including 10 years of grace. It is interest free except for a service charge of 3/4 of 1% per annum to meet IDA's administrative costs. • NOTE: Money figures are expressed in U.S. dollar e~uivalents . FOAM NO. 1121 (5-76) T E C HN I CAl DA T A PROJECT: COUNTRY: TOTAL COST: Farakka Thermal Power India $499. 4 mi 11 ion • . BANK Ff NANC I NG : $25 million for 20 years, including 5 years of grace at an annual interest rate of 8.25% IDA FINANCING: $225 million, standard IDA terms OTHER FINANCING: Government of India, $249.4 million IMPLEMENTING ORGANIZATION: Natfonal Thermal Power Corporation Limited 315 Kai lash., 26 Kasturba Gandhi Marg New Delhi - 11001 India. Cable address: THERMPOWER, New Delhi PROJECT DESCRIPTION: It includes installation of: (a) three 200-MW coal- • fired generating units; (b) ancillary equipment and related works: (c) 410 km of associated 400-KV transmission lines; (d) a training simulator. PROCUREMENT: All equipment financed under the credit and loan schemes wi 11 be procured by the National Thermal Power Corporation Limited, through international competitive bidding, in accordance with the Bank/lDA guidelines. CONSULTANTS: Technical assistance will be available to review engineering work related to the project. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 13% 1986 - 0 - •