India - Western Gas Development Project

Document of The World. Bank FOR OFilCIAL lUSE ONLY Report No. P-4724-IN MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TN AN AMOUNT EQUIVALENT TO USt295 MILLION TO INDIA FOR A WESTERN GAS DEVELOPMENT PROJECT Januarv 11, 1988 This document has a restricted distribution and mav be used bv recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit = Rupees (Rs) US$i Rs 13.0 WEIGHTS ArJD MEASURES METRIC SYSTEM ABBREVIATIONS GAIL Gas Authority of India Limited GOT - Government of India HBJ - Hazira-Bijaipur-Jagdishpur Gas Pipeline 8PG - Liquefied petroleum gas MMCMD - Million cubic meters per day NCL - Natural gas liquids ONGC - Oil and Nacural Cas Comm,ssion FISCAL YEAR Ap :! 1 - March 31  FOR OFFICIAL USE ONLY INDIA WESTERN GAS DEVELOPMENT PROJECT LOAN AND PROJECT SUMMARY Borrower: India, Acting by its President Benefici.ary: Oil and Natural Gas Conmnission (ONGC) Amount: US$295 million equivalent _'erms: Standard Onlending Terms: Government will onlend US$295 million to ONGC for 15 years including 5 years grace at an interest rate of not less than 15%. The Government will bear the foreign exchange and the interest rate risks. :-.anciaI Plafl: ONCC (Equity) US$583.6 million IBRD US$295.0 million Suppliers' Credits US$170.1 million Commercia! Borrowings US$305.2 million uotal US$1,353.9 million rr-nomic Ra.e ot Return: 28% S atf Appraisal Report: No. 6503-IN .aps: JIBRD 19877 and 19878 This document has a restricted distribution and may be used ty recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTTVE DIRECTORS ON A PRDPOSED LOAN TO INDIA FOR THE WESTERN GAS DEVELOPMENT PROJECT 1. The following memorandum and recommendation on a proposed loan to India for US$295 miliion is submitted for approval. The proposed loan would be at the standard variable interest rate, with a maturity of 20 years, includ.ng a five-year grace period. The Government of India (GOI) would relend the loan to ONGC for 15 years including five years of grace at an effective interest rate of not less than 15X per annumc. GOI will bear the foreign exchange and interest rate risks. The proposed loan would help finance development of offshore and onshore gas fields in Western India in close coordination with the development of the corresponding gas markets. 2. Background. Despite the significant contribution made by domestic energy resources (in particular, coal) in commercial energy supplv, India's economy remains heavily dependent on oil imports. At the same time, India has been able to reduce its dep-ndence on imported oil over the past ten years -- trom about oO Lo less; than 30% -- through a massive shift of resources into sil exptoratinr and development. The c,ve.lopment of the Bombay High oilfield, which accounts for about 70% of India's current domestic oil production, was a direct result of these investments. Despite the continued effort to expand domestic o.l production, in particular through the involvemen.t of foreign oil c3mpanies, India faces again the possibility of a major increase in its oil imports. Th.ree factors account for that. First, production from the Bombay High oill;eid has now reached a plateau and is likely to decline in the years ahead. Second, :he results of exploration efforts in recent years indicate rhlat these etfor;s w 11 most likely result in the discovery of only small and medium-sized fields, whic!a wculd yield mostly gas. Third, despite a major effort to conserve energy and tc encourage the substitution of oil products with other fuels, the consumption of oil products continues to grow in India above the rate of economic growth. In part, this reflects the expansion of rhe industrial sector, in particular its growing reliance on captive power generatiorn, as we-i as the rapid growth of the transport sector, wher. the apt ions for r lacing oi.l products are quite Limited, 3. Io avoid a resurgence of oil imports, the Government is placing an increased emphasis on the search for new oil and gas reserves in partnership with internationai oil companies, redoubling its efforts to encourage '.ne efficient use of energy resources, and relying increasingly on its natural gas resources Lo meet the demand for some of the liquid petroleum products. It is estimated that Ind'.a s aburdant reserves of natural gas -- estimated at 700 bilii,n cubic meters (eoquivalent ro 570 million tons of oil) -- could replace abor:t m Ar.: qlr ' r01,e.;m products over the next decade. Ac: ei:'r-i.t a ', . . : '.2 I,s.S a r.d in parti cular avoidllng the flaring of large .a:n eias V ;. - '> d ga , Ii require major investments in transmission n:ra s t. r e^.r q p;ropriate lidjustment.s in existing policies that govern *,e fis.e ,~... rac r r ' lS cirrontly under way on the Hazira-Bijaipur- ad r .4 -i i - c l ring, both associated gas from the Hombay High oiifield as well as free gas from the South Bassein gas fields to  - 2 - markets in ncrth-western India. At the same time, the Covernment has taken steps to encourage a rapid absorption of gas into the economy. In 1984 it established the Gas Authority of India Limited (GAIL) and entrusted it with the responsitbility for gas planning, marketing and distribution. More recently, the Government rationalized the pricing policy for gas, took steps to diversify the use of gas, and -- with support from the Bank -- undertook a planning exercise that was aimed at identifying consumers that could shift from the use of other fuels to gas. 4. The Government had originally decided that the gas supplies chat will come on stream as a result of the proposed Western Gas Development Project should be used as feedstock in the production of fertilizer. Subsequent discoveries of additional gas supplies in the South Bassein gas field, and a recognition of the potential demand for gas outside the use in the fertilizer production, led to the identification of additional gas users. As first steps. the Government decided to construct three gas-based combined cycle power plants along the HBJ gas pipeline! it also asked GAIL to carry out a market study tnat would identify potential gas consumers, in particular large energy users that could be converted to use of gas; and it is seriously considering to extend the HBJ gas pipeline to Delhi to capture the potential market for gas that exists in this area. The main bulk consumers already committed to gas are thus the fertilizer industry and power plants. For the fu-.ure, an increasing number of consumers in the power sector, in heavy ndust.y and in fertilizer production is pianned. All these efforts reflect the Government's concern to contain che growth of petroleum product imports ana lo meet the country's energy needs through the accelerated use of natural In the past, gas has been produced in India jointly with crude oi. Most of this gas has been sold on a cost-plus basis. With the advent of large qjuantities of non-associated gas reserves in the Western Region, the CcGernment needed to modify its gas pricing policy. After extensive deliberations of various gas pricing options, the Government adopted the lollowing pricing principles for gas resources to be developed in the Western tegion: (a) the base price of natural gas would be linked to the price of the fuel or feedstock replaced; (b) the price structure would be simple to administer; (c) the operator of the HBi gas pipeline, GAIL, should be able to earn a fair return on costs. These pricing principles have now been formalized into a set of gas prices, which are above the current import parity price of fuel oil, but somewhat lower than the domestic pcice for fuel oil. The approach adopted by the Government with regard to gas pricing is sound. 6. Rationale for Bank Involvement. The main objectives of the Bank's astistance to the gas sector are (a) to support the accelerated development of gas resources, (b) to strengthen the institutions in the oil and gas sector 'hat are involved in the development of natural gas resources and the marketing of natural gas, and (c) to encourage the expansion of gas use, in particular through appropriate utilization and gas pricing policies. The pr-oosed project fits well with the Bank's strategy. First, it provides .,psrt for the least-cost development of gas fields and associated infrastructure; second, through the inclusion of gas production and gas 1j.ization studies, it contributes to the Government's efforts to assure that The development of gas markets keeps pace with gas productiou, thus minimizing the flaring of gas; these studies will also strengthen GAIL's capabilities to  - 3 - identify new markets for gas; and, finally, by examining the economic benefits of a wide range of gas uses, these studies would also contri'bute to the ongoing diversification of gas utilization. 7. Project Objectives. The project is designed to support the development of proven gas reserves and the appraisal of additional reserves for future production. The project is also designed to assist in the expansion of domestic gas markets and to strengthen ONGC's and GAIL's capabiliti's to draw up coordinated plans for the least-cost development of gas resources and their optimal utilization. 8. Project Description. The proposed project would include (a) the development of the second phase of the offshore South Bassein gas field and the construction of associated gas treatment facilities, to increase the fields production from 10 to 20 million cubic meters of gas per day (MMCMD); (b) construction of the Heera-Uran gas pipeline, which is designed to bring associated gas that is currently flared to the Bcmbay area; (c) appraisal and development of the Gandhar gas condensate field; (d) provision for seismic surveys of the offshore Hazira and Tapti gas field; and (a) studies of the coordinated least-cost development of gas resources and their optimal utilization in the Western Region. 9. IThe project, which will be carried out over six years, provides funds for a gas processing facility, pipelines, drilling materials, drilling equipment, well services, seismic surveys as well as engineering and other consultancy services. The total cost of the project is estrmated at US$1,353.9 million equivalent, with a foreign exchange component of US$770.3 million (57Z). A breakdown of costs and the financing plan are shown in Schedule A. Amounts and modalities of procurement, and of disbursements, as wel.l as the disbursement schedule, are shown in Schedule B. A timetable of key project processing events and the status of Bank Group operations in India are given in Schedules C and D, respectively. Maps and the Staff Appraisal Report, No. 6503-IN, datei January l1, 1988, are also attached. 10. Agreed Actions. The Government has agreed on the following actions: (a) connection of sufficient gas users to utilize the gas produced under the project, and submission of reports to the Bank annually on the progress of gas market development; (b) assurance to review gas prices with the Bank regularly; (c) completion of studies aimed at coordinating gas production planning and gas utilization and review of their results with the Bank, by June 30, 1989; and (d) assurance to maintain ONGC's financial viability through appropriate adjustments in producer prices of crude oil and gas. In add'iticn, ONGC has agreed to establish project implementation units for each of the major project components, and appoint an overall coordinator for this project. 11. Benefits. Economic benefits under the proposed project are expected from (a) the increased production of natural gas, LPG, NGL and condensate, and (b) the expansion of the domestic market for gas, all of which will reduce the demand for imported petroleum products. The economic rate of return for the integrated South Bassein gas development program is 28%. The economic rates of return for individual components are 82% for the South Bassein (Phase II), 36% for the Heera-Uran gas pipeline, and 66% for the development of the Gandhar field. Crude oil price assumptions are taken at $18 per barrel (in constant terms).  - 4 - 12. Risks. Possible risks include reservoir and production uncertainties that are inherent in oil and gas projects, delays in the development of gas markets, and a sharp drop in international oil prices. To minimize these risks, only well established fields have been included for development ir. this project; ^onservative well productivity assumptions have been used, and extensive market planning and gas utilization studies were included in order to give a more precise indication of the growth of the gas market. Finally, sensitivity analyses have shown that returns on the integrated investment under this project remain satisfactory even with inter.iational oil prices dropping to a level as low as US$12 per barrel. 13. Recommendation. I am satisried that the proposed loan would comply with the Articles of Agreement of the Bank and recommend that the Executive Directors approve the proposed loan. Barber B. Conable President Attachments Washington, D.C. January L1, 1988  -5- Schedule A Project Costs: In US$ Millions Local a/ Foreign Total South Bassein Field Phase II - Offshore 78.5 178.4 256.9 - Onshore 74.6 55.3 129.9 Heera-Uran Gas Pipeline 5.5 104.6 110.1 Gandhar Field - Drilling 203.6 247.0 450.6 - Facilities 53.8 8.0 61.8 North Tapti and Hazira Fields - Drilling 29.7 47.0 76.7 - Seismic 1.0 7.0 8.0 Studies, Consulting 0.3 1.0 1.3 Base Cost 447.0 648.3 1,095.3 Physical Contingencies 44.7 64.9 109.5 Price Contingencies 91.9 57.1 149.1 Total Project Cost 583.6 770.3 1,353.9 a/ Including duties and taxes of US$192.1 million. Einancing Plan: In US$ Millions Local Foreign Total IBRD a/ 295.0 295.0 Commercial Borrowings 305.2 305.2 Export and Suppliers Credits 170.1 170.1 ONGC (Equity) 583.6 - 583.6 Total Firancing Required 583.6 770.3 1,353.9 a/ Includes up to US$25 million for advance contracting and retroactive tinancing.  Scheduie 8 Page I of 2 Procurement Table (USS Million) -----------------Procurement Method----------------- Project Element ICB LCB Other a/ N.A. b/ Total Process Facilities BPB Platform and 144.5 - - - 144.5 South Bassein Tie Lines (-) (-) (-) (-) () Hazira Faciiities 85.3 5r 3 c/ - - 115.3 (70.0) (-1 (-) (-) (70.0) Gandhar Surface Facilities 15.0 55.4 c_ - 70.4 (6.0) ()('-)(6.0) Pipeline Heera-Uran Gas Pipeline 106.4 17.0 - 7.6 131.0 (60.0) (-! (-) (-) (60.0) Mater als and Equipment 257.6 51.6 9.7 89.9 408.8 (55.5) C-) (5.0) (-) (60.5) Services 183.1 119.5 27.2 94.6 424.4 (70.0) (-1 (14.0) (-) (84.0) Seismic Surveys 8.5 - 1.0 - 9.5 (8.5) (-) (1.0) (-) (9.5) Engineering, Management and Studies - 50.0 50.0 (-) (-} ~~~(5.0) (-I (5.0) Total 800.4 273.5 87.9 192.1 1,353.9 (270.0) (-) (25.0) (-) (295.0) Note: Figures in parentheses are the respective amounts financed by the Bank. a/ Limited international oidding, direct contracting and force account. b/ Taxes and duties. c/ VI local expenditure; includes local civil works. d/ includes South Bassein and Gandhar.  -7- Schedule B Page 2 of 2 Estimated Disbursements Category Amount % of Ex enditure Financed (US$:lillion) Process facilities 76.0 100% of foreign expenditures and 90% of local expenditures Pipeline system 60.0 100% of foreign expenditures and including installation 90% of local expenditures Drilling materials and 61.0 100% of foreign expenditures and equipment 100% of local expenditures Drilling services 70.0 90% of expenditures Seismic surveys 8.0 90% of expenditures Engineering and studies 5.0 100% of expenditures Unallocated 15.0 Total 295.0 Disbursements US$ Million IBRD Fiscal Year FY88 FY89 FY90 FY91 FY92 FY93 Annual 10 90 95 60 35 5 Cumulative 10 100 195 255 290 295  -8- Schedule C Timetable of Key Project Processing Events (a) Time taken to prepare: About two years (b) Prepared by: Oil and Natural Gas Commission (c) First mission to consider the project: April 1986 (d) Appraisal mission departure: July 1986 (e) Negotiations: November 17-23, 1987 (f) Planned date of effectiveness: July 15, 1988  Schedule 0 Page 1 of 4 THE STATUS OF BANK GROUP OPERATIONS IN INDIA A. STATEMENT OF BANK LOANS AND IDA CREDITS (As of September 30, 1987) US$ million Loan or Fiscal (Net of Cancellations) Credit Year of No. Approval Purose Bank IDA 1/ Undisbursed 2/ 61 Loans/ 3,142.9 - 122 Credits fully disbursed - 7,749.6 - 842-IN 1979 Bombay Water Supply II - 196.0 20.35 1648-IN 1979 Ramagundam Thermal Power 50.0 - 4.64 963-IN 1980 Inland Fisheries - 20.0 5.81 981-IN 1980 Population II - 46.0 7.51 1003-IN 1980 Tamil Nadu Nutrition - 32.0 5.69 1011-IN 1980 Gujarat Irrigation II - 175.0 39.68 1012-IN 1980 Cashewnut - 22.0 8.36 1027-IN 1980 Singrauli Thermal II - 300.0 19.99 1034-IN 1980 Karnataka Sericulture - 54.0 9.11 1046-IN 1980 Rajasthan Water Supply & Sewerage - 80.0 25.53 1053-IN 1930 Farakka Thermal Power - 225.0 11.13 1887-IN 1980 Farakks Thermal Power 25.0 - 25.00 1897-IN 1981 Kandi Watershed and Area Development 30.0 - 7.93 1072-IN 1981 Bihar Rural Roads - 35.0 6.60 1078-IN 1981 Mahanadi Barrages - 83.0 14.90 1082-IN 1981 Madras Urban Development II - 42.0 8.73 1108-IN 1981 M.P. Medium Irrigation - 140.0 36.19 1116-IN 1981 Karnataka Tank 'rrigation - 54.0 14.75 1125-IN 1981 Hazira Fertil ....c Project - 399.1 25.51 1135-IN 1981 Maharashtra Agricultural Ext. - 23.0 0.08 1137-IN 1981 Tamil Nadu Agricultural Ext. - 28.0 4.03 1138-IN 1981 M.P. Agricultural Ext. II - 37.0 15.31 1146-IN 1981 National Cooperative Development Corp. II - 125.0 23.50 1172-IN 1982 Korba Thermal Power Project II - 400.0 135.84 1177-IN 1982 Madhya Pradesh Major Irrigation - 220.0 107.29 1178-IN 1982 West Bengal Social Forestry - 29.0 16.06 1185-IN 1982 Kanpur Urban Development - 25.0 10.11 2076-IN 1982 Ramagundam Thern.al Power II 300.0 - 152.69 1219-IN 1982 Andhra Pradesh Agricultural Ext. - 6.0 4.01 2123-IN 1982 Refineries Rationalization 200.0 - 29.22 2165-IN 1982 Rural Electrification TII 304.5 - 59.69 1269-IN 1982 Kallada Irrigacion - 60.0 4.37 2186-lN 1982 Kallada Trrigation 20.3 - 18.66 1280-GN 983 2uj'arat WaLer Supply - 72.0 55.96 i286-lN 1983 jammu"Kashmir and Haryana Social Forestry - 33.0 17.65 1288-IN 1983 Chambal Madhya Pradesh Irrigacion 'I - 31.0 11.53 1289-IN 1983 Subernarekha Irrigation - 127.0 59.44 2205-IN 1983 Krishna-Godavari Exploration 165.5 - 37.02  Schedule D Page 2 of 4 US$ million Loan or Fiscal (Net of Cancellations) -edit Year of No. Approval Purpose Bank IDA 1/ Undisbursed 2/ 1299-IN 1983 Railways Modernization & Maintenance 1I - 200.0 69.48 2210-IN 1983 Railways Modernization & Maintenance IT 200.0 - 197.04 2241-IN 1983 South Bassein Gas Development 139.3 - 34.57 lj19-IN 1983 Haryana Irrigation II - 150.0 67.63 1332-IN 1983 U.P. Public Tubewells II - 101.0 51.67 1356-IN 1983 Upper Indravati Hydro Poher - 170.0 117.26 2278-IN 1983 Upper Indravati Hydro Power 156.4 - 156.01 1369-IN 1983 Calcutta Urban Development III - 147.0 118.09 2283-IN 1983 Central Power Transmission 250.7 - 245.74 2295-IN 1983 Himalayan Watershed Management 46.2 - 40.27 1383-IN 1983 Maharashtra Water Utilization - 32.0 19.74 2308-IN 1983 Maharashtra Water Utilization 22.7 - 22.64 2329-IN 1983 Madhya Pradesh Urban 24.1 - 19.50 139/-IN 1984 Orissa Irrigation II - 105.0 54.93 1424-IN 1984 Rainfed Areas Watershed Dev. - 31.0 35.55 1426-IN 1984 Population III - 70.0 57.80 1432-IN 1984 Karnataka Social Forestry - 27.0 18.44 2387-IN 1984 Nhava Sheva Port 250.0 - 153.96 2393-IN 1984 Dudhichua Coal 151.0 - 109.38 2403-IN 1984 Cambay Basin Petroleum 242.5 - 186.14 2415-IN 1984 Madhya Pradesh Fertilizer 203.6 - 83.60 .454-TN 1984 Tam;l Nadu Water Supply - 36.5 37.65 SF-12--IN 1984 Tamil Nadu Water Supply - 36.5 45.17 1468-IN 1984 Periyar Vaigai II Irrigation - 17.5 3.84 SF-16-IN 1984 Periyar Vaigai IT Irrigation - 17.5 17.96 1483-IN 1984 Upper Canga irrigation - 125.0 128.29 1496-TN 1984 Gujarat Medium IrrigatLon - 172.0 i41.42 2416-IN 1984 Indira Sarovar Hydroelectric 157.4 - 153.0i SF-20-IN 1984 Indira Sarovar Hydcoeiectric - 129.8 155.46 2417-IN 1984 Railways Electrification 28U.7 - 245.17 2442-IN 1984 Farakka TI Thermal Power 300.8 - 294.08 2452-IN 1984 Fourth Trombay Thermal Power 135.4 - 81.38 1502-IN 1984 National Cooperative Development Corporation IIJ - 220.0 210.49 1514-TN 1985 Kerala Social Forestry - 31.8 29.53 1523-IN 1985 National Agric. Extension I - 39.1 45.45 1544-IN 1985 Bombay Urban Development - 138.0 147.62 2497-.N 1985 Narmada (Gujarat) Dam and Power 200.0 - 200.00 1552-IN 1985 Narmada (Gujarat) Dam and Power - 100.0 105.65 1553-IN 1985 Narmada (Gujarat) Canal - 150.0 177.73 1569-IN 1985 Second National Agricultural Ext. - 49.0 49.99 1611-IN 1985 National Social Forestry - 165.0 177.47 1613-IN 1985 Indira Sarovar Hydroelectric - 13.2 15.87 2498-IN !985 iharia Coking Coal 248.0 - 226.56 2505-IN 1985 Maharashtra Petrochemical 300.0 - 240.53 2534-IN 1985 Second National Highway 200.0 - 193,84 2544-TN 1985 Ch'ndrapur Thermal Power 300.0 - 270.45 2555-IN 1985 Rihand Power Transmission 250.0 - 222.01 2582-TN 1985 Kerala Power 176.0 - 175.97 1619-IN 1986 West Bengal Minor irrigation - 99.0 129.24 1621-IN 1986 Maharashtra Composite irrigation - 160.0 205.25 1622-IN 1986 Kerala Water Supply and Sanitation - 41.0 48.46  Schedule D Page 3 of 4 US$ million Loan or Fiscal _-_-(Net of_ Cancellations) __ Credit Year of Mo.__ Approval PurP_se Bank IDA 1/ Undisbursed 2/ 1623-IN 1986 West Bengal PopuLation - 51.0 60.46 1631-IN 1986 National Agricultural Research II - 72.1 81.98 2629-IN 1986 Industrial Export Dev, Finance 90.0 - 89.31 2630-IN 1986 ICICI-indus. Exp. Dev. Finance 160.0 - 149.48 1643-IN 1986 Gujarat Urban - 62.0 69.84 2653-IN 1986 NABARD I 375.0 - 272.48 2660-IN 1986 Cement industry 165.0 - 162.52 2661-IN 1986 ICICI - Cement Industry 35.0 - 33.67 1665-IN 1986 Andhra Pradesh II Irrigation* - 140.0 163.15 2662-IN 1986 Andhra Pradesh II Irrigation* 131.0 - 131.00 2674-IN 1986 Combined Cycle Power 485.0 - 484.54 2729-IN 1986 Cooperative Fertilizer 150.2 - 150.20 2730-IN 1986 Cooperative Fertilizer 152.0 - 104.82 1737-IN 1987 Bihar Tubewells - 68.0 70.50 2769-IN 1987 Bombay Water Supply & Sewerage III * 40.0 - 40.00 1750-IN 1987 Bombay Water Supply & Sewerage III * - 145.0 135.00 ;754-IN 1987 National Agric. Extension III * - 85.0 91.75 1757-lN 1987 GuIarat Rural Roads - 119.6 129.24 l773-IN 1987 National Water Management - 114.0 119.26 2785-.N 1987 O(M India Petroleum 140.0 - 140.00 2796-'N 1987 Coal Mining & Quality improvement 340.0 - 340.00 2813-IN 1987 Telecommunicat ons IX 345.0 _ 345.00 'rctal 11,081.2 14,499.3 of which hes been repaid 1,761.8 341.6 Total now oostanding 9,3i9.4 14,157.7 Amount Svid 133.8 of wFI ch has been repaid 133.8 - - rota, now held by Bank and IDA 3/ 9,319.4 14,157.7 Total uncisbursed (excluding *) 6,158.72 3,739.43 i/ IDA Credit amounts for SDR-denominated Credits are expressed in terms of their US dollar equivalents, as established at the time of Credit negotiations and as subsequently presented .o the Board. 2/ Undisbursed amounts for SDR-denominated IDA Credits are derived From cumulative disbursements converted Io their US dollar equivalents at the SDR/US dollar exchange rate :n ettect Dn September 30. 1987, while original principal is based on the exchange rate in eftect at negotiations. This accounts for the fact that in some cases, the undisbursed balance as shown in USS equivalent is higher than the original principal. 3i l>r:or tO exchange ad' usmenr. Not yet eftective.  SCHEDULE D - 1 9 Page 4 of 4 B. STATEMENT OF IFC INVESTMENTS (As of September 30, 1987) Fiscal Amount (USS million) Year Company Loan Eguity Total 1959 Republic Forge Company Ltd. 1.5 - 1.5 1959 Kirloskar Oil Engines Ltd. 0.8 - 0.8 1960 Assam Sillimanite Ltd. 1.4 - 1.4 1961 K.S.B. Pumps Ltd. 0.2 - 0.2 1963-66 Precision Bearings India Ltd. 0.6 0.4 1.0 1964 Fort Closter Industries Ltd. 0.8 0.4 1.2 1964-75-79 Mahindra Ugine Steel Co. Ltd. 11.8 1.3 13.1 1964 Lakshai Machine Works Ltd. 1.0 0.3 1.3 1967 Jayshree Chemicals Ltd. 1.1 0.1 1.2 1967 Indian Explosives Ltd. 8.6 2.9 11.5 1969-70 Zuari Agro-Chemicals Ltd. 15.2 3.8 19.0 1976-87 Escorts Limited 15.6 - 15.6 1978 Housing Development Finance Corp. 4.0 1.6 5.6 1980 Deepak Fertilizer and Petrochemicals Corporation Ltd. 7.5 1.2 8.7 1981 Coromandel Fertilizers Limited 15.9 - 15.9 1981-86 Tata Iron and Steel Company Ltd. 51.4 _ 51.4 1981 Mahindra, Mahindra Limited 15.0 - 15.0 1981 Nagarjuna Coated Tubes Ltd. 1.5 0.3 1.8 1981-86,'87 Nagarjuna Signode Limited 2.3 0.3 2.6 1981 Nagarjuna SteeLs Limited 2.9 0.2 3.1 1982 Ashok Leyland Limited 28.0 - 28.0 1982 The Bombay Dyeing and Manufacturing Co. Ltd. 18.8 - 18.8 1982 Bharat Forge Company Ltd. 15.9 - 15.9 1982 The Indian Rayon Corp. Ltd. 14.6 - 14.6 1984-86 The Gwalior Rayon Silk Manu- facturing (Weaving) Co. Ltd. 16.0 - 16.0 1985 Bihar Sponge 15.1 0.7 15.8 1985 BaJaj Auto Ltd. 23.9 - 23.9 1985 Modi Cement 13.0 - 13.0 1985 India Lease Development Ltd. 5.0 0.3 5.3 1986 Larsen and Toubro Ltd. 21.8 - 21.8 1986 India Equipment Leasing Ltd. 2.5 0.4 2.9 1986 Bajaj Tempo Limited 30.5 - 30.5 1986 The Great Eastern Shipping Company Ltd. 8.0 2.0 10.0 1987 Gujarat Narmada 'lalley Fertilizer 35.6 - 35.6 i987 Hero Honda Motors Ltd. 7.7 - 7.7 1987 Wimco Limited 4.7 - 4.7 1987 Titar Watches Limited 15.2 0.4 15.6 '987 Export-Import Bank of India 15.0 - 15.0 .987 Gujarat Fusion Glass Ltd. 7.5 1.7 9.2 1987 The Cujarat Rural Housing Finance Corp. - 0.2 0.2 .987 Hindustan Motors Ltd. 37.6 - 37.6 TOTAL CROSS COMMITMENTS 495.5 18.5 514.0 Less: Cancellar:ons, Terminations, Repayments and Sales 276.4 8.0 284.4 Now Held 219.1 10.5 229.6 !Undisbursed 149.8 2.9 152.7  __RO 19677 INDIA WESTERN GAS DEVELOPMENT GUJARAT PROJECT 22, BaoSr 18 1cP C,,1 0" Pp*~'.es 20 ';CP Na5ula) GaS P,pehnos GUJARA T DAH&~j Bro6cn A Ka*&$ Tor-lai E.te's,o' 4 0 P,ocess P'atfors s SEM YVoose NG. .040- Poot | PotenpaIl O' an2 o0 Gas Re.s.,ve 3~, PrOrn 0.. R*60f moa sn atrrM t gas) + KOSAMBA Popon Naturai Gas Rosoe'es Ownde' Constructor .. _. __ __ ___ .............. tr~~~~~~~~~AWAS - ~ 3e -nhF Natural Gas P;Cei.n# KAWAS JAL Cpdlrt,zer olants / 0 P,orcssPatoos^-o K a-ars tr -21' ". _-_ 26 Na'rt"a Gas Ppe 1- |- - 30 rr CL .... ce -=ses , > * - - .s' t o .es A _a- -e "^a Ii -PATA i r '-fcens ars ;.'Si. : b S'r.' .D"2sr-' ru(.as Pe -.; p.P! 'icts -a",si a. 5iswe .a 'a i es~~~~~"' 3' ': 0 8 '._'d S5ii DAHA h. ' MA HA RASHTRA TARAPUR | r C 20 30 40 SG 00 tO BOMBAY HIGH ________- SPA~~~~~~~~~~~~~~PAN ,_~'A* STA% Gu,jAIOAT /DA GGJAP AT ._ I N D j , , _ I ' BOMBAY MrI 0, ~ &far ~ ~ ~ 1 VHEER A* SR ' % -* *w 'yI A US.'t AO _ WI*.A -> 'fl *5. UU~ ,d - UMeA A' r'Ae. CO'5c'.o, 'PA d*"0A4h0e Aw Ab - be *rol UAW E. AU"e * -, & A NKA ' I>s -o' . .w rc.. *000 a.,. pop n oW p ' r. c_>*.'.f *p ,_, 198 98 UWS 0' U'* V 0' MAO ,S* A. .cC. o. 0' USf UVOOO 7 2' 3 V NOVEMBER 1986  IBRD 19878 r .- e~~~~~~~~~~~~~i V1A , AL NE-' DEL RA%E, g ~ ~ ~ ~ ~ Sathn~ NEPA ,, '\ A; . ro ' ,7 \ ~~~~ ~ ~ ~~~~~~~~~~~~~CHINA 30,- PA/KISTAN -/A 5.DELHI ( rrbroia A < >_ 2 , )' ; ~~~~~~~~~~~~Shah hlatnp.r NEPAL S.~ /11111t \J9itDC I fi -*_ -' j o'cBHUTAN / -'>1_ , -wJ'TAR PRABFSA S A I ' t~~~~~~~~~~~~~~~~~~~~~agt Shopur#/< K r~ ~~~~~ Wo Sisy' ;? )A?NGLADESH I- i A . H Y A % - X ' 2 ' ' 4 ' ,_ - -~'' / '1A'_ DvgapuD Sa a,a .P k A [E r- \ dcl a / - i>~~~~~~~~~~~~~~~~~~DC hgd\ [ ^ K 20'- A P- Born"ay c -I - b-i -IC '-PC ! .- . '.-0.0. o oo 200 o 300 40C 550 j s; ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~V,sasr' * INDIA WESTERN GAS DEVELOPMENT PROJECT Oil and Natural Gas Sectcr Proposed A Fertiliier Plants Pl&nnt k-R c Madras Gas Pipetine MRL. 454s . . 0 5'' emS rrne mID ndor Construction ,, ArS.'r'" ... , 5S '< '525 0x,S2)5: -fe .:arne ....... ..- Gas Pipeline '. Pr ' .' DE'~*"i ''r*. .e ; Gas Fired Power Stations O$sCDri w4 > h~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Frtilizer Plants Co CPL ExiSt!!! ! cCOMMl c Retcont Gs$O0st Disscovesn" K ,' 8 G.siOll Fields / Gas Ppel-lem r*s_ _-/ Product Piptlines c - - - w / -~ -~ C,ude Pipelines __ e. -* w ' , f | S ' 5 -r __ Ret,',eries SRI N National Capital _^D LANKA - Th*ns - i--- - ilStateonda ioundaries *' r S ~ illteratoinal Boundaries 80go. ' NOVEMBER 1986