Announcement of India to Use Two Hundred Fifty Million Seven Hundred Thousand Dollars Loan for Power Project on May 23, 1983

~ . · FOR IMMEDJATE ' RELEASE ~ - . - • World Bank 1818 H Street, N.W., Washington,,D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 83/85 Contact: Hugh Blackman May 23, 1983 (202) 477-3.'573 INDIA TO USE $250.7 MILLION LOAN FOR POWER PROJECT India's power transmission capability will be improved with the assistance of a $250. 7 million World Bank loan. The $617 .3 million project is part of the country's ongoing power development program to meet growing demand and to increase reliability of power supply The project will provide the first stage of integration between the Northern, Western, and Southern power grids by constructing inter- and intra-regional transmission links. It will be the first step towards an integration of separate regional transmission networks into a national grid. The National Thermal Power !Corporation, the implementing agency for • the project, will construct about 550 km of 400 kV double-circuit transmission lines, and about 560 km of 400 kV single-circuit lines, mainly in the southern region. This will provide the area with increased transmission capability. A high-voltage direct current sub-station will be built at Vindhyachal in Madhya Pradesh, and will involve a technology which is being introduced for the first time in the Indian power sector. Project works also include: the construction or extension of eight related 400/220 kV sub-stations,and provision of metering, instrumentation, and communications equipment. Technical services for equipment, and system engineering for the high-voltage direct current link will be provided. The World Bank loan is for 20 years, including five years of grace, at an annual rate linked to the cost of Bank borrowings. The loan also carries an annual commitment charge of 0.75% on undisbursed balances and a front-end fee of 0.25% on the amount of the loan. 'NOTE: Money figures are expressed in U.S. dollar equivalents • •