India - Second Petrochemicals Development Project

Document of The World Bank FOR OFFICIAL USE ONLY _ ,LA 22f</4/ I Al Z,rsi -FV Report No. P-5031-IN MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON PROPOSED LOANS IN AN AMOUNT EQUIVALENT TO US$12 MILLION TO INDIA AND IN AN AMOUNT EQUIVALENT TO US$233 MILLION TO THE INDIAN PETROCHEMICAL CORPORATION LTD.v WITH THE GUARANTEE OF INDIA FOR A SECOND PETROCHEMICALS DEVELOPMENT PROJECT AUGUST 22, 1990 This document has a restricted distribution and may be used by recipients only in the performance of their oflical duties. Its contents mry not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit = Rupees (Rs) Rs. 1.00 - Paise 100 US$1.00 - Rs. 17.0 Rs. 1,000,000 - US$58,823 (As of June 1990) WEIGHTS AND MEASURES Metric System ABBREVIATIONS AND ACRONYMS CIPET Central Institute of Plastic Engineering & Technology DMT Di-methyl Pterephtalats GOI Government of India HDPE High Density Polyethylene IPCL Indian Petrochemicals Corporation Ltd. LLDPE Linear Low Density Polyethylene MES Minimum Economic Size MGCC Maharashtra Gas Cracker Complex PBR Poly-butadiene Rubber PP Polypropylene TPY Ton Per Year FISCAL YEAR April 1 - March 31  FOR OFFICIAL USE ONLY INDIA SECOND PETROCHEMICALS DEVELOPMENT PROJECT Loans and Proiect Summary Borrowers: India, acting by its President, and Indian Petrochemical Corporation Ltd. (IPCL). Guarantor: India, acting by its President for the loan to IPCL Beneficiaries: Central Institute of Plastic Engineering & Technology (CIPET). Amount: US$245 million equivalent, comprising: (a) A loan to India: US$12 million (b) A loan to IPCL: US$233 million Terms: Twenty years, including five years of grace, at the Bank's standard variable interest rate. Relending Terms: US$12 million to India to be passed on to CIPET as a budgetary allocation. Financing Plan: Local Foreign Total .......... .(US$ Million). IBRD - 245.0 245.0 GOI 1.0 - 1.0 IPCL 332.2 8.8 341.0 333.2 253.8 587.0 Economic Return: 37%. Staff Appraisal Report: Report No. 7688-IN dated August 22, 1990 This document has a restricted distribution and may be used by 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 EXECUTIVE DIRECTORS ON PROPOSED LOANS TO INDIA AND INDIAN PETROCHEMICAL CORPORATION LTD. FOR A SECOND PETROCHEMICALS DEVELOPMENT PROJECT 1. The following memorandum and recommendation on proposed Bank loans of US$12 million to India and US$233 million to the Indian Petrochemical Corpora- tion Ltd. (IPCL) is submitted for approval. The proposed loans would be for 20 years, including 5 years of grace, at the Bank's standard variable interest rate and would help finance the Second Petrochemicals Development Project. 2. Background. The Bank's first loan in the petrochemical sector (Loan 2505-IN) made in 1985 is financing the construction of the Maharashtra Gas Cracker Complex (MGCC), which will be the first such facility in India of international scale and technology. IPCL, one of the most efficient public enterprises in India, is implementing this project, which is progressing according to schedule. Per capita consumption in India of polyolefins is among the lowest in the world but domestic consumption and imports have been increasing rapidly. The Government has decided that additional petrochemical capacity is needed and foresees the possibility of investments amounting to US$6-8 billion over the next ten years. This future expansion in petro- chemical production capacity is based on: (a) the projected strong growth of the domestic market for petrochemicals; (b) the improved availability of feedstock (ethane/propane fractions) in India; and (c) concern about the large and growing dependence on imports of commodity plastics. 3. The Government approached the Bank to review the planned investments in the sector and where justified to finance some of the projects. The Bank has completed this review and concluded that additional investments in the sector are warranted in view of India's capacity for economic production of petrochemicals. The Bank has also advised, however, that the level of future investments should be lower than that presently under consideration because of uncertainties about future trends in domestic and international markets and that each major investment would need to be carefully scrutinized to ensure economic viability. 4. Rationale For Bank Involvement: The petrochemical sector is important both because of the size of planned future investments and because of the role the industry can play in lowering costs of basic petrochemical inputs to downstream industries. The Government is making progress in reforming policies to increase competition and efficiency in the sector. The policy reforms already implemented include reduction of nominal and effective protection levels for local production of commodity plastics, insistence on world scale and technology standards )r new investments, bringing feedstock prices more in line with world prices, and encouragement of the private sector to compete actively and play a major role in future development of the industry. The proposed project would enable the Bank to continue to assist GOI in improving the efficiency and competitiveness of the sector by supporting economically attractive investments and by strengthening technical and managerial expertise in the plastic processing industry. The project would also enable the Bank to continue its ongoing dialogue on industrial policy reform, particularly as it pertains to the petrochemicals sector. In this respect, the proposed project fits in well with the Bank's overall  strategy of supporting subsector projects to address outstanding policy issues and help reduce the cost of basic raw materials as a basis for lowering currently very high manufactured product costs in India. 5. Project Objectives. The objectives of the project are to: (i) expand capacity to produce basic petrochemicals economically; and (ii) improve efficiency and quality of downstream plastic products. In addition, the project would support the CovermiLent in its efforts to further Improve the incentive framework for the sizable investments being considered for the petrochemical sector. 6. Proiect Description, Cost and Financing. The proposed project consuists of three components: (a) Investments Component: expansion or modernization of IPCL's plastics production capacity through (i) expansion of the MGCC cracker from 300,000 to 400,000 tons per year (tpy) of ethylene and expansion of the LLDPE/HDPE plant to include an additional 75,000 tpy HDPE train using ethylene from the proposed expansion; (ii) construction of a second phase 12,500 tpy wires/cables pc,lyethylene compounding unit at Nagothane; (iii) establishment of a new 7,500 tpy polycarbonate and polyphenylene oxide unit; (iv) setting up of a new 60,000 tpy polypropylene plant; (v) the revamping and expansion to 50,000 tpy of IPCL's existing butadiene extraction and polybutadiene rubber manufacturing complex in Vadodara; and (vi) implementation of six minor de-bottlenecking and equipment modernization schemes at Vadodara and Nagothane. The proposed project investments involve the least cost cxpansion of production capacities of basic petrochemicals and will help optimize the use of the existing infrastructure in IPCL's operations ir. these complexes, enhancing the economics of both units. (b) Market Development Component: carrying out of a plan of preproduction imports of polymers for the purpose of developing a market for products that will be produced by MGCC and the proposed project for the first time in India; and (c) Technical Assistance Component: a loan of US$12 million for the Central Institute of Plastics and Engineering Technology (CIPET) for financing testin6 and training equipment and overseas training of key personnel. This component would help upgrade the technical base of the plastic processing subsector, promoting new products and improving product design and quality. It will also help spread the benefits arising from the expansion of domestic production of petrochemicals to the small scale sector. 7. The total cost of the project is US$587.0 million equivalent, of which the Bank would finance most (97%) of the foreign exchange component, or US$245 million. This would consist of a loan of US$233 million to IPCL (with the GOI as guarantor) to finance the foreign exchange cost of equipment for project investments, imports of commodity plastics for market seeding purposes, incremental working capital and interest during construction on the Bank loan. Another Bank loan of US$12 million to the Government would finance analytical equipment and foreign training of staff of CIPET Schedule A shows the estimated capital costs and the financing plan; Schedule B gives details of the amounts and method of procurement and disbursements; Schedule C shows a time table of key project processing events; and Schedule D gives the status of Bank Group operations in India. The Staff Appraisal Report No. 7688-IN is being distributed separatcly. 8. Agreed Actions: The Government has agreed to: (a) inform the Bank of any changes proposed in the price of ethane/propane (C2/C3, the feedstock for the production of petrochemicals), which has recently been set at Rs. 3,300 per ton, and afford the Bank an opportunity to comment on these changes; (b) review periodically, commencing in calendar year 1991 and every two years  - 3 - thereafter, the progress of planned investments in Olefins and Aromatic complexes to assess their economic viability and discuss the results of these reviews with the Bank; (c) review periodically the minimum economic size criteria established for petrochemical products and intermediates taking into account ongoing technological developments; (d) arrange for the timely supply of adequate quantities of feedstock to IPCL for the purpoFe of the project; and (e) cause CIPET to furnish to the Bank each year its rolling annual training and extension program starting June 30, 1991 and to arrange t _Ing with overseas institutions satisfactory to the Bank. 9. IPCL has prepared Environmental Impact Assessment (EIA) reports for all project components at both the Nagothane and Vadodara complexes. These reports were reviewed and found to be satisfactory by the Bank. IPCL has agreed to build and operate project facilities in accordance with environmental standards satisfactory to the Bank and carry out a detailed safety audit by qualified consultants prior to commissioning of the project facilities to assess the impact of risk to the project area and the surrounding community. This safety audit is to be completed by December 31, 1990 for the Nagothane complex and by September 30, 1991 for the Vadodara complex. It was also agreed that IPCL would continue to monitor its operations to ensure that affluent streams and ambient air quality remain within Indian standards and take corrective measures when needed. In addition, IPCL agreed to implement its revised market development plan furnished to the Bank for LLDPE, HDPE, PBR, PP and such other products as may be agreed to by the Bank. 10. Economic Benefits: The project would support future development of an economically efficient petrochemicals industry in India. The proposed project investments have high economic rates of return because they are largely expansion and debottlenecking of existing facilities. Project benefits would come from: (a) production of olefins and derivatives at economically competitive costs to meet India's growing demand; (b) the introduction and production of durable, high-value engineering plastics; (c) the modernization and improvement in the technology base of the domestic plastic processing industry, resulting in improved product design and quality; and (d) the expansion of the domestic market for new products through improved availability of raw material supply to plastic processors. The project would result in annual savings of about US$260 million in foreign exchange over the estimated productive life of its investment components. It would create direct employment for about 680 people during the peak project implementation, of which around 340 would become permanent. It involves valuable know-how and technology transfer arrangements, which are useful for future development of the Indian petrochemical sector. The overall economic return for the investments component is over 37%, with the return cf each component in excess of 20%. 11. Risks. No unusual risks are involved in the specific project investments. All contracted technologies are proven and IPCL has the technical and institutional capability to absorb and manage the large and complex mix of technologies. There is, however, a minor risk that the domestic market for petrochemicals may not grow as currently envisaged and that some overcapacity could develop in the late 1990s. The risk would increase if the level of future investments is not carefully monitored and domestic prices of the project's outputs were to increase significantly due to increases in taxes or high feedstock costs. The probability of this happening is, however, considered low. The Government has agreed with the Bank to review periodically its sectoral investment strategy to avoid overcapacity from developing and discuss the results of these reviews with the Bank. With  -4- regard to domestic prices, the Government is committed to lowering the cost of manufactured products throug3 gradual policy reforms and rationalization of basic input prices. The Bank. would through its policy dialogue continue to encourage the Government to adopt appropriate feedstock prices and reduce further protection levels as a basis of achieving its objectives. 13. Recommendation. I am satisfied that the proposed loans comply with the Articles of Agreement of the Bank and recommend that the Executive Directors approve them. Barber B. Coneble President Attachments August 22, 1990 Washington, D.C.  . 5 - Schedule A INDIA SECOND PETROCHEMICAL PROJECT .STIMATED COSTS AND FINANCINC PLAN Project Costs: Local Foreign Total I. IPCL's Projects ......... US$ Million. A. Investments Eauipment & materials 164.3 68.8 233.1 Land 1.5 - 1.5 Civil Works 20.8 - 20.8 Erection and painting 23.4 - 23.4 License Fees, basic Engineering 10.0 32.3 42.3 Detailed Engg. & Services 13.4 - 13.4 Pre-Operating Expenditures 7.7 1.9 9.6 Working Capital 32.1 1i 0 43.1 B. Market Development - 75.0 75.0 Subtotal Base Cost 273,2 189.0 462.2 II. Technical Assistance for CIPET Fellowship & Training - 0.6 0.6 Equipment & Materials 0.6 8.6 9.2 Subtotal Base Cost Q.6 9.2 9.8 Physical contingencies 28.1 14.2 42.3 Price Contingencies 31.3 15.4 46.7 Total Project Cost 333.2 227.8 561.0 Interest During Construction - 26.0 26.0 Total Financing Recuired 333 253.8 587.0 Financing Plan: Local Foreign Total ......... US$ Million. IBRD - 245.0 - 245.0 IPCL 332.2 8.8 341.0 GOI 1.0 - 1.0 Total 333.2 253.8 587.0  - 6 Schedule B Page 1 of 2 INDIA SECOND PETROCHEMICALS PROJECT I. PROCUREMENT METHODS AND DISBURSEMENT (US$ Millions) Procureraent Methods la ICB LCB Other /k NA /g Total A. Investment/Technical Assistance 1. Equipment & 165.4 125.0 12.8 - 303.2 material (90.4) (-) (7.0) (-) (97.4) 2. Land - - 1.9 - 1.9 3. Civil works & erection - 55.2 - - 55.2 4. License fees & - - 53.4 - 53.4 Basic zng. .L (-) (-) (32.4) (-) (32.4) 5. Detailed eng. services - - 16.2 - 16.2 6. Pre-operating - - 12.9 - 12.9 expenditures (-) (-) (3.2) (-) (3.2) Installed cost 165.4 180.2 97.2 - 442.8 (90.4) (-) (42.6) (-) (133.0) 7. Working capital - - 43.2 - 43.2 i' -) (- ) (11 .o0 (-) (11. O) 8. Int. duri-g construction - - - 26.0 26.0 (-) (-) (-) (26.0) (26.0) B. Import of Rolymers 75.0 - - - 75.0 (75.0) (-) (-) (-) (75.0) oerall Total 240.4 180.2 140.4 26.0 587.0 (165.4) (-) (53.6) (26.0) (245.0) /a Aounts include taxes and import duties (US$112.3 million equivalent) and figures in parentheses are Bank financed portion. ib Include limited interuational bidding and direct purchase of proprietary equipment. /c not applicable. / Foreign portion of license fee for engineering polymers unit is excluded from Bank financing.  7 - Schedule B Page 2 af 2 II. DISBURSEMENT OF BANK LOANS Category US$ Million PerW,anta"e to be finpnged A.IPCL LOA Equipment and materials 80.30 100% of CIF or ex-factory cost License fees/Basic Eng. 32.30 100% of foreign exchange cost Imports of polymers 75.00 1004 of CIF cost Interest during Construction 26.00 Amounts due before March 1, 1996 Unallocated 19.40 Subtotal 233.00 B. GOI LOA Testing and training 10.00 100% of CIF or ex-factory c.ost equipment Overseas Training 0.66 100% of cost Unallocated 1.34 Subtotal 12.00 Total 245.00 III. Estimated Disbursements Bank FY 1291 1992 1993 1994 1995 1996 1997 , US$ million. Annual 29.0 58.0 80.0 49.0 21.0 7.0 1.0 Cumulative 29.0 87.0 167.0 216.0 237.0 244.0 245.0  - 8 - Schedule C INDIA SECOND PETROCHEMICAL PROJECT TIMETABLE OF KEY PROJECT EVENTS (a) Time taken to prepare 20 months (b) Prepared by IPCL, CIPET (c) First Bank mission October 16, 1987 (d) Pre-appraisal mission October 10, 1988 (e) Appraisal Mission February 6, 1989 (f) Negotiations December 11, 1989 (g) Planned date of effectiveness December, 1990 (h) List of relevant PSRs and PCRs None  _9 g Schedule D Page 1 of 4 THE STATUS OF BANK GROUP OPERATIONS IN INDIA A. STATEMENT OF BANK LOANS AND IDA CREDIlS (As of June 80, 1990) USS Million (net of cancellations) Loan or Fiscal Year ------------------------_-------__ Credit No. of Approval Purpose IBRD IDA 1/ Undisbursed 2/ 78 Loans/ 4540.3 - 1SO Credits fully disburesd - 10537.2 - 1172-IN 1962 Korba Thermal Power II - 400.0 30.45 1177-IN 1982 Madhya Pradesh Major Irrigation - 220.0 69.10 1178-IN 1982 West Bengal Social Forestry - 29.0 6.16 2076-IN 1982 Ramagunlam Therm l Power II 280.0 - 18.40 1280-IN 1983 Gujarat Water Supply - 72.0 39.82 1286-IN 1988 Jammu/Kashmir and -Iaryana Social Forestry - 88.0 5.10 1819-IN 1988 Haryana Irrigation II 150.0 9.90 1332-IN 1988 U.P. Public Tubewells II - 101.0 10.65 1856-IN 1988 Upper Indravati Hydro Power - 170.0 52.86 2278-IN 1988 Upper Indravati Hydro Power 166.4 - 166.01 1869-IN 1983 Calcutto Urban Development III - 147.0 90.34 2283-IN 1988 Central Power Transmission 260.7 - 172.33 2295-IN 1983 Himalayan Watershed Management 31.2 - 13.70 1388-IN 1983 Nbharashtra Water Utilization - 32.0 5.23 2329-IN 1983 Madhya Pradesh Urban 18.1 - 7.27 1424-IN 1984 Rainfed Areas W-tershed Dev. - 31.0 31.27 1426-IN 1984 Population III - 70.0 7.48 1432-IN 1984 Karnataka Social Forestry - 27.0 10.99 2387-IN 1984 Nhava Shova Port 250.0 - 26.683 2393-IN 1984 Dudhichus Coal 109.0 - 29.07 2403-IN 1984 Cambay Basin Petroleum 213.5 - 61.44 2415-IN 1984 Madhya Pradesh Fertilizer 203.6 - 44.19 1454-IN 1984 Tamil Nadu Water Supply - 36.5 22.53 SF-12-IN 1984 Tamil Nadu Water Supply - 36.5 43.20 1468-IN 1984 Perlyar Vaigai II Irrigation - 17.5 0.21 SF-16-IN 1984 Periyar Valgal II Irrigation - 17.5 13.46 1483-IN 1984 Upper Ganga Irrigation - 125.0 106.65 1496-IN 198' Gujarat Medium Irrigation - 172.0 107.76 2416-IN 1984 Indira Sarovar Hydroelectric 17.4 - 12.60 SF-20-IN 1984 Indira Sarovar Hydroelectric - 13.8 16.65 1613-IN 1985 Indira Sarovar Hydroelectric - 13.2 16.42 2417-IN 1984 Railways Electrification 279.2 - 64.87 2442-IN 1984 Farakka II Thermal Power 300.8 - 196.77 2452-IN 1984 Fourth Trombay Thermal Power 135.4 - 13.96 102-IN 1984 National Cooperative Development Corporation III - 220.0 149.83 1514-IN 1985 Kerala Social Forestry - 31.8 20.05 1523-IN 1985 National Agric. Extension I - 39.1 37.68 1544-IN 1985 Bombay Urban Development - 138.0 118.67 */ Final disbursements being processed.  - 10 - Schedule D Page 2 of 4 US3 Million (net of cancellations) Loan or Fiscal Year ------ Credit No. of Approval Purpose IBRO IDA I/ Undisbursed 2/ 2497-IN 1986 Namarda (Oujarat) Dam ond Power 200.0 - 200.00 152-IN 1985 Narmada (CuJarat) Dam and Power - 100.0 81.88 1653-IN 1985 Narmada (Ou arat) Canal - 150.0 149.60 1569-IN 1986 Second National Agricultural Ext. - 49.0 37.09 l1ol-IN 1985 National Social Forestry - 165.0 114.58 2498-IN 1985 Jharia Coking Cool 67.7 - 6.88 2505-IN 1985 Vharaeshtra Petrochemicals 300.0 - 17.57 2534-IN 1985 Second National Highways 200.0 - 161.87 2544-IN 1985 Chandrapur Thermal Power 300.0 - 188.38 2565-IN 1985 Rihand Power Transmission 250.0 - 77.86 2682-IN 198S Korala Power 176.0 - 162.80 1819-IN 1988 West Bengal Minor Irrigation - 99.0 121.89 1821-IN 1988 Maharashtra Composite Irrigation - 180.0 191.24 1822-IN 1986 Kerala Water Supply and Sanitation - 41.0 41.63 1623-IN 1986 West Bengal Population - 51.0 34.70 1681-IN 1986 National Agricultural Research II - 72.1 72.44 2629-IN 1986 Industrial Export Dev. Finance 90.0 - 46.36 2630-IN 1986 ICICI-Indus. Exp. Dev. Finance 160.0 - 64.54 1643-IN 1986 Gujarat Urban - 82.0 50.88 2853-IN 1988 NABARD I 376.0 - 5.93 2660-IN 1988 Cement Industry 165.0 - 93.33 2681-IN 1986 ICICI - Cement Industry 36.0 - 26.19 1605-IN 1986 Andhra Pradesh II Irrigation - 140.0 168.41 2662-IN 1986 Andhra Pradesh II Irrigation 131.0 - 131.00 2674-IN 1986 Combined Cyclo Power 486.0 - 89.13 2780-IN 1988 Cooperative Fertilizer 146.0 - 53.98 1737-IN 1987 Bihar Tubowells - 68.0 68.46 2769-IN 1987 Bombay Water Supply & Sewerage III 40.0 - 40.00 1760-IN 1987 Bombay Water Supply & Sewerage III - 146.0 120.67 1764-IN 1987 National Agric. Extension III - 86.0 75.03 1757-IN l987 Gujarat Rural Roads - 119.6 118.68 1770-IN 1987 National Water Management - 114.0 107.79 2785-IN 1987 Oil India Petroleum 140.0 - 93.18 2796-IN 1987 Coal Mining A Quality Improvement 340.0 - 129.83 2813-IN 1987 Telecommun?cations IX 193.0 - 42.35 2797-IN 1987 Utter Pradesh Urban Development 20.0 - 20.00 1780-IN 1987 Utter Pradesh Urban Development - 130.0 111.77 2827-IN 1987 Karnataka Power 330.0 - 304.68 2844-IN 1987 National Capital Power 485.0 - 359.47 2845-IN 1987 Talcher Thermal 376.0 - 344.82 2846-IN 1987 Madras Water Supply 58.0 - 63.00 1822-IN 1987 Madras Water Supply - 16.0 4.17 2893-IN 1988 National Dairy II 200.0 - 200.00 1859-IN 1988 National Dairy II - 160.0 96.94 2904-IN 1988 Western Gas Development 28383 - 128.67 2928-IN 1988 Indus. Fin. A Toch. Asst. 860.0 - 21.683 2929-IN 1988 Housing D-v. Finance Corp. 250.0 - 54.63 2936-IN 1988 Railway Modernization III 390.0 - 301.86 2938-IN 1988 Karnataka Power II 260.0 - 239.01 2957-IN 1988 Utter Pradesh Power 380.0 - 323.38 1923-IN 1988 Tamil Nadu Urban Dcv. - 300.2 241.33 1931-IN 1988 Bombay & Madras Population - 67.0 19.67 2994-IN 1989 States Roads 170.0 - 170.00 1959-IN 1989 States Roads - 80.0 63.97 8024-IN 1989 Nathpa Jhakrl Power 486.0 - 449.99 1952-IN 1989 National Seeds III - 160.0 139.81 3044-IN 1989 Petroloum Trtnsport 340.0 - 340.00 2008-IN 1989 Vocational Training - 260.0 220.90 3045-IN 1989 Vocational Training 30.0 - 30.00 2010-IN 1989 Upper Krishna Irrigoation II - 160.0 135.13 3050-IN 1989 Upper Krishna Irrigation II 166.0 - 166.00 3058-IN 1989 Export Development 120.0 - 108.30 30S9-IN 1989 ICICI - Export Development 176.0 - 160.00  - 1.1 - Schedule D Page 3 of 4 USS Million (net of cancellations) Loan or Fiscal Year -----________________________________ Credit No. of Approval Purpose IBRD IDA 1/ Undisbursed 2/ 2022-IN 1989 National Sericulture - 147.0 132.73 3006-IN 1989 National Sericulture 30.0 - 30.00 8098-IN 1989 Eloctronics Industry Dev. 8.0 - 7.S0 3094-IN 1989 ICICI - Electronic* Ind. Dev. 101.0 - 91.00 8095-IN 1989 1081 - Electronics Ind. Dev. 101.0 - 91.04 8096-IN 1989 Maharashtra Power 400.0 - 880.08 2067-IN 1989 Nat'l. Family Wolfare Trng. - 113.3 109.37 8108-IN 1989 Nat'l. Family Welfare Trng. 113 - 11.80 3119-IN 1990 Industrial Technology Development 145.0 - 131.00 20e4-IN 1S90 Industrial Technology Development - 65.0 62.46 3144-IN 1990 Punjab Irrigation/Drainage 16.0 - 15.00 2076-IN 1990 Punjab Irrigation/Drainage 1 50.0 147.65 2115-IN 1990 Hyderabad Water Supply* 79.9 84.59 3181-IN 1990 Hyderabad Water Supply* 10.0 - 10.00 3196-IN 1990 Cement Industry Restructuring* 300.0 - 300.00 Tot l 16530.9 16349.2 11694.74 of which has been repaid 2444.8 575.8 Total now outstanding 14086.1 15773.4 Amount Sold 133.8 of which has been repaid 133.8 Total now held by Bank and IDA 3/ 14086.1 15773.4 Total undisbursed (excluding *) 7127.9 4072.6 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 to the Board. 2/ Undisbursed amounts for SDR-denominated IDA Credits are derived from cumulative disbursements converted to their US dollar equivalents at the SDR/US dollar exchange rate in effect on June 30, 1990, while original principal Is based on the exchange rate in effect at negotiations. This accounts for the fact that in some cases the undisbursed balance as shown In US3 equivalent Is higher than the original principal. %/ Prior to exchange adjustment. * Not yet effective.  - 12 - Schedule D ?age 4 of 4 S. STATEMENT OF IFC INVESTMENTS --------------------------------- (As of June 30, 1990) Amount (USS million) ------------------------------------------- Fiscal Year Company Loan Equity Total 1969 Republic Forge Company Ltd. 1.5 - 1.6 1969 Kirloska Oil Engines Ltd. 0.8 - 0.8 19e0 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 Gloster Industries Ltd. 0.8 0.4 1.2 1964-76-79/90 Uahindra Ugine Steel Co. Ltd. 11.8 2.7 14.6 1964 Lakahmi Machine Works Ltd. 1.0 0.3 1.3 1987 Jayshree Chemicals Ltd. 1.1 0.1 1.2 1967 Indian Explosives Ltd. 8.6 2.9 11.6 1969-70 Zuari Agro-Chemicals Ltd. 16.2 3.8 19.0 1976-87 Escorts Limited 15.6 - 15.6 1978 Housing Development Finance Corp. 4.0 1.6 6.6 1980/82/87/89 Deepak Fertilizer and Petrochemicals Corporation Ltd. 7.6 4.2 11.7 1981 Coromandel Fertilizers Limited 16.9 - 16.9 1981-88-89 Tata Iron and Steel Company Ltd. 72.2 21.4 93.6 1981/90 Mahindra, Mahindra Limited 16.0 6.4 21.4 1981 Nagarjuna Coated Tubes Ltd. 1.6 0.3 1.8 1981-86/87 Nagarjuna Signode Limited 2.3 0.3 2.6 1981 Nagarjuna Steels Limited 3.6 0.2 3.7 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. 16.9 - 16.9 1982 The Indian Rayon Corp. Ltd. 14.6 - 14.6 1984-88 The Cwalior Rayon Silk Manu- facturing (Weaving) Co. Ltd. 16.0 - 16.0 1986 Bihar Sponge 16.2 0.6 16.8 198S Bajaj Auto Ltd. 23.9 - 23.9 1986 Modi Cement 13.0 - 13.0 1986 India Lease Development Ltd. 6.0 0.8 6.8 1986 Larsen and Toubro Ltd. 21.8 - 21.8 1986 India Equipment Leasing Ltd. 2.6 0.3 2.8 1986 Bojaj Tempo Limited 30.6 - 30.6 1986 The Great Eastern Shipping Company Ltd. 6.0 6.9 11.9 1987 Gujarat Narmada Valley Fertilizer 38.1 - 38.1 1987 Hero Honda Motors Ltd. 7.7 - 7.7 1987 Wimco Limited 4.7 - 4.7 1987-89-90 Titan Watches Limited 21.8 0.8 22.4 1987 Export-Import Bank of India 16.0 - 15.0 1987 Gujarat Fusion Glass Ltd. 7.5 1.7 9.2 1987 The Gujarat Rural Housing Finance Corp. - 0.2 0.2 1987 Hindustan Motors Ltd. 37.7 - 37.7 1988 Invel - 1.1 1.1 1989 WBI 0.2 0.2 1989 Keltron - 0.4 0.4 1989 Gujarat State Fertilizer 29.6 - 29.6 1989 Ahmedabad 21.4 - 21.4 1990 Tate Electric 42.7 - 42.7 1990 J.M. Shar - 0.4 0.4 1990 M a m 10.0 - 10.0 1990 UCAL - 0.6 0.6 TOTAL GROSS COMMITMENTS 627.8 67.8 686.6 Less: Cancellation, Terminations, Repayments and Sales 328.2 20.9 349.1 Now Held 299.6 36.9 336.5 = == __== Undi1sbursed 157.9 0.6 158.5