India - NTPC Power Generation Project

Documnt * The World Bank FOR OFFICIAL USE ONLY MICROFICHE COPY Report No.:P- 6087 IN Type: (PM) Title: NTPC POWER GENERATION PROJECT Rexwt N P-6087-IN Author: STROM VAN LEEUWEN Ext.:81461 Room:G3074 Dept.:SA2EG MEMDRANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION MKD DEVELOPKENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN IN AN AMOUNT EQUIVALENT TO US$400 MILLION TO NATIONAL THERMAL POWER CORPORATION LIMITED (WITH THE GUARANTEE OF INDIA) FOR A NTPC POWER GENERATION PROJECT JUNE 4, 1993 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.  CURRENCY EQUIVALENTS (as of April 26, 1993) Currency Unit * Rupees (Rs) Rs 1.00 Paise 100 Re 1,000,000 = USS 33,113 US$1.00 Re 30.2 MEASURES AND EQUIVALENTS 1 Kilometer (Mm) - 1,000 meters (m) * 0.6214 miles (ml) 1 Meter (m) * 39.37 inches (in) 1 Cubic Meter (ms) - 1.31 crbic yard (cu yd) - 35.35 cu. ft. 1 Ton (t) - 1,000 kilograms (kg) - 2,200 lbs 1 Kilovolt (kV) - 1,000 volts (V) 1 Megawatt (1W) - 1,000 kilowatts (KX) - 1 million watts 1 Kilowatt-hour (kWh) = 1,000 watt-hours 1 Megawatt-hour (MWh) = 1,000 kilowatt3-hours 1 Gigawatt-hour (GWh) - 1,000,000 kilowatt-hours ABBREVIATIONS AND ACRONYMS GOI Government of India LRMC Long-run Marginal Cost NTPC National Thermal Power Corporation PlC Power Finance Corporation Limited POWERGRID Power Grid Corporation of India SEB State Electricity Board FISCAL YEAR April 1 - March 31  FOR OMCIAL USE ONLY INDIA NTPC POWER GENERATION PROJECT Loan and Pro3ect Summarv Borrowers National Thermal Power Corporation Limited Guarantors India, acting by its President Amount: US$400 million Termst 20 years, including five years grace, at the Bank's standard variable interest rate. NTPC rould bear the foreign exchange and interest rate risks. Guarantee Fee: The Government of India (GOI) would charge a guarantee fee of 1Z on the outstanding amount of the Bank Loan. Financing Plan: --=-'--R.bfIt lion- ---- -- --1.8 oilli on--- Componente PY98-FY97 FYS6-"00 PY98-P97 PY9-F2002 --Ro.bil 11on------ --US8 million--- NTPC'e Not Internal Cash Generation 41.4 75.0 1167 1,808 Borrowing: Loans Contracted 8.0 - 1,078 - Proposed Bank Loan 14.8 - 400 - Future Bank Lendn 20.4 10.9 529 271 Other Loans to be Aranpd 35.9 245.5 98e 5,825 Bonds 16.2 48.0 604 1,140 Total Borrowing 124.0 804.4 8,448 7,286 Equity 11.1 - 800 - Total Source. 177.8 880.2 4,960 9,089 .-~~~~~ - Estimated Bank Disbursements: Bank Fiscal Year FY94 FY95 FY96 FY97 Annual 80 160 120 40 Cumulative 80 240 360 400 Rate of return: 14.7Z Staff Appraisal Report: No. 11827 MAP: IBRD 24799 Project site for Rihand II and Vindhyachal II power stations. This document has a restricted distribudon and may be used by recipients only in the performance of their ofcial duties. Its contents may not otherwise be disclosed without World Bank authorization.  NDIORANDUK AND RECOMMENDATION OF THE PRESIDENT OF t s INTERNATIONAL BANK FOR RECONSTRUCTION AD DEVELOPMENT TO THEX EMCUTE DIRECTORS ON A PMOPOSED LOAN TO TER NATIONAL TEERNAL POWE CORPORATION LIITED (NTPC) FOR A NTPC POWER GENERATION PROJECT 1. I submit for your approval the following memorandum and recommendation on a proposed loan to the National Thermal Power Corporation Limited (NTPC), with the guarantee of the Government of India, for the equivalent of US$400 million to help finance a NTP'C Power Generation Project. The loan would be at the Bank's standard variable interest rate, with a matu.rity of 20 years, including five years of grace. NTPC will bear the foreign exchange risk. 2. Sector Background. Despite progress in system expansion, power shortages persist and power supply is likely to continue to constrain economic growth in India well into the niext century. Supply capacity expansion alone vill not substantially improve the critical power demandisupply situation. A major challenge facing Government of India (GOI) in the power sector is to attain a better balance in sector development between supply expansion and improvement in the efficiency of supply, consumption and pricing of power. 3. Power Sector Reform. GOI recognizes that the growth targets of its economic stabilization and liberalization program will be threatened as long as power supply continues to severely constrain industrial development. Faced with a growing power gap and diminishing public resources available for the sector, GOI has opened the powpr sector to private sector participation. GOl has simultaneously started to promote reforms at the state level in the State Electricity Boards (SEBs): (a) the Power Finance Corporation (PFC) was established to raise resources and lend only to utilities, which have undertaken to improve their resource mobilization and operational efficiency. Other discretionary financing is similarly being directed by 001 to the performing states; (b) GOI established POWERGRID to improve the efficiency in power transmission and system operations, through an extensive restructuring of the transmission sector; and (c) GOI has adopted new investment and commercial policies and electricity tariffs for its main generating utility, NTPC. The new policies allow NTPC to limit its power supply to match the level of payments from each client, to direct its future investments to regions and states meeting their obligations to NTPC and to construct power stations in its investment program with private sector partners. 4. The reform process in the power sector has only just begun and much remains to be done at both the central and state levels. Pending policy and regulatory issues and the poor financial position of most SEBs constrain private power development. At the state level the precarious financial position of most state governments together with political obstacles to raising power tariffs will continue to hinder the financial strengthening of the SEBs including their ability to pay the central entities and private generators. POWERGRID will have to establish itself as a coordinator of system operations and pursue improvements in bulk power and transmission  -2- 5. GOI's program supports policies for effectlve institutional, regulatory and financial reform in line with the recently approved guidelines for Bank lending as shown in the following paragraphs. GOI's recent actions through NTPC, POWERGRID and PVC and the opening the sector to private investment demonstrate a clear commitment to reform as shown in the following paragraphs. 6. Transparent regulation. India has in place, In its Electricity Supply Act, a workable regulatory framework for the sector and transmission regulation is being studied under Ln. 3577-IN POWERGRID System Development Project. Progress has been made in designing a regulatory framework making private investment in the power sector more attractive, by amending the Act. The major remaining regulatory area which needs to be tacklad is that applicable to the SEBs as in practice the state governments do not allow the SEBs to operate with the autonomy provided by the Act. 7. Pricing and Demand Sidti Management. The sector's financial distress and resource constraints stem from operational inefficiencies and low retail tariffs which average ebout 50X of the long-run marginal cost (LRMC) of supply. New two part bulk tariffs for NTPC coal fired staticns became effective in November 1992, which price the output of the new plants at LRiM. Further reforms in bulk power and transmission tariffs will be studied and implemented under Ln. 3577-IN. At the state level progress on tariff reforms has been generally unsatisfactory. Until recently, agricultural tariffs on average recovered less than 10? of LRMC. Several states have in 1992/93 adjusted their agricultural tariffs by implementing 001's minimum agricultural tariff policy directive, which brings the agricultural tariffs to about 201 of LMRC. The tariff reform process in the States has only started and the challenges ahead are formidable: regular adjustments going well beyond the minimum agricultural tariff - as well as improvements in other tariff categories - would be needed to restore the financial viability of the SEBs and make a meaningful contribution to financing future investments. Major changes are also required in the structure of the SEB tariffs to ensure that it provides appropriate incentives to conserve energy. Demand side management (DSM) is being introduced in India and incentives for conservation are only emerging with the ongoing trade liberalization, which will promote the required competi.ive pressures and with state-by-state electricity tariff reform. 8. Importation of Services. As part of its liberalization program, India has opened up its power sector to entry by foreign investors and import duties an advanced technology and equipment have been reduced. Compared to most other developing countries, India has an abundance of educated and trained manpower and the use of foreign consultants would mainly be required in high-technology projects and in the management of projects of less- efficient SEBs/states. 9. Commercialization and Corporatization. The centrally-owned entities in the power sector are all incorporated under the Companies Act and already enjoy reasonable autonomy in decision making and day-to-day operations. Following an intensive dialogue with the Bank, the Department of Power has approved new c3mmercial and investment policies for NTPC aimed at putting India's power sector on a commercial basis. The main features of these policies are to permit NTPC to shut-off or restrict power supply to states which are not meeting their payment obligation. These policies have  -3- states which are not meeting their payment obligation. These policies have been notified to all the states and are incorporated in the bulk power supply agreements between NTPC and its clients. Significant progress has been achieved in establishing comercial contracts between the SEBs and the central utilities under the POWERGRID System Development Project and the proposed project. POWERGRID has now concluded interim ccomercial arrangements with most SEBs and NTPC has signed one regional bulk power supply agreement. The dialogue on commercialization and corporatization of the SEBs has been initiated and the Bank in its future operations will seek to support those states ready to take upfront action to commercialize their SEBs. 10. Private investment. India, unlike most developing countries. has a few large private utilities. The Bank has been actively involved, in close cooperation with IFC, in supporting their investment programs. Following the opening of the power sector to private developers, the Bank is supporting the implementation of the new policy under the Second Maharashtra Power Project (Ln. 3498-IN, approved in June 1992) by helping Maiarashtra develop its private power policy and regulatory framework and negotiate contracts with private developers for major power generation projects. These activities are partly financed by two grants from the Japan Grant Facility. A Technical Assistance Project for Private Power Development to provide State Electricity Boards and other power utilities the required specialized expert services to assist soliciting, evaluating and negotiating private power project proposals has been negotiated with the Bank and is scheduled to be presented to the Board in June 1993. Under the proposed project the Bank would assist NTPC in establishing joint ventures with p:ivate domestic and foreign investors. 11. Experience from Previous NTPC Operations. As of January 31, 1993, the Bank Group had invested US$ 3 billion in 15 operations with NTPC. The total undisbursed balance under five ongoing projects amounted to US$461 million. In FY93, NTPC generated about 22? of India's total power supplies at operating efficiencies far exceeding those of the state utilities. NTPC which currently has an installed generating capacity of 13.054 MW, is likely to remain by far the largest generating company in the country. Project completion reports for the first nine NTPC operations recognize the achievements and success of NTPC in implementation; despite some delays in the pre-construction stages, NTPC generally completed the projects on schedule and within budget, reflecting the strong project management capability it has developed. Quality control procedures introduced by NTPC helped improve the quality standards of power equipment supplied by Indian manufacturers. However, the financial health of NTPC has been threatened by the accumulation of receivables from the SEBs. Intensified collection efforts and central appropriations (direct payments by GOI from budgetary support intended to the concerned states) have reduced NTPC's accounts receivable and further improvements have been achieved after the approval of NTPC's new investment and commercial policies by the Government in October 1992 after a prolonged dialogue with the Bank. The Bank's latest Performance Audit Report noted that its own efficiency notwithstanding, NTPC did not bring about the expected sectoral improvements. The reports also identified areas for further improvement for NTPC itself, highlighting the need to pay more attention to: (a) internal resource mobilization by NTPC for its future investment; (b) adequacy of coal supply arrangements; (c) environmental impact mitigation and rehabilitation and resettlement of project affected persons; and (d) pre- implementation activities including preparation of tender documents and timely  -4- award of contracts. These issues have been discussed with NTPC and have been incorporated in the design of the proposed project. 12. Rationale for Bank Involvement. The project helps implement the Bank's lending strategy for the power sector, which: (a) promotes private investment in the sector; (b) supports the development of utilities that demonstrate a firm commitment to improve their operational performance and finances; and tc) encourages investments designed to improve the utilization, operations and efficiency of existing generation, transmission and distribution facilities. The project is in line with the Country Assistance Strategy, which calls for operations that help improve sectoral policy framework and support institutional development and private sector investment and in the power sector emphasizes the need for major policy reforms aimed at improving operational efficiency, financial performance and resource mobilization. It will also help strengthen NTPC's environmental management practices and addresses a wide range of environmental problems in existing and planned power stations. 13. Project Objectives. The project has been designed to support India's reform program for the power sector and its principal objectives are to: (a) help improve commercial discipline in the power system through the implementation of new commercial and investment policies (para. 9); (b) help NTPC meet its targets for capacity additions through increased mobilization of funds from internal resources, domestic and foreign capital markets as well as from the private sector through joint operations; tc) upgrade environmental performance of NTPC power stations and make its new power stations environmentally more sustainable; and (d) strengthen its environmental and resettlement and rehabilitation (R&R) management capability. 14. Project Description. The proposed project comprises: (a) Generation Capacity Additions: a five year time-slice of NTPC's least cost investment program of new coal and gas-based power stations for which full funding has not yet been arranged; (b) Private Sector Components support to NTPC to undertake several joint venture operations; and (c) Environmental Strengthening and Resettlement and Rehabilitation: implementation of an Environmental Action Plan (ZAP) which includes environmental upgrading projects, training and technical assistance for strengthening of Nt'PC's environmental management and R&R capability and the implementatior, of the ZAP. 15. The proposed loan of US$400 million is the first of a series of three operations to support NTPC's investment program which would be proposed -r consideration by the Board at intervals of 18 to 24 months for a total of about US$1.2 billion, provided that NTPC remains in compliance with the Bank's legal conditions. 16. NTPC's current investment program includes nine coal-fireed power plants with an aggregate installed capacity of 8,260 MW and one 400 MW gas- based combined cycle power plant expected to be initiated during the Eighth Plan. In addition, NTPC is planning to develop several projects as a minority partner in joint ventures with private companies. During the Ninth Plan, NTPC expects to start construction of seven projects (six coal-fired and one gas- based combined cycle) for a total capacity of 8,400 MV. To be elig.ble for Bank financing, the projects would have to meet the following criteriat (a) technical, economic and financial viability would have been established; (b) all necessary GOI clearances including Public Investment Board (PIB) and  -5- environmental would have been obtained; Environmental Impact Assessments would have to be carried out in accordance with Bank guidelines and for 'AO projects an environmental assessment sumuary would have to be circulated to the Board before issuance of tender documents; (c) the SEB of the state in which the plant is to be located would be in compliance with the terms of the existing bulk power supply agreement; (d) a sound financing plan would have been confirmed; and (e) a satisfactory Resettlement Action Plan, where required, duly endorsed by the State authorities would have been prepared. Th6 first two projects out of NTPC's investment program for which Bank finance has been requested are Stage TT expansions of the Rlihand and Vindhyachal thermal power plants in the Singrauli area in the north-eastern part of India. 17. Project Implementation. The project would be executed by NTPC. NTPC's investment requirements including interest during construction during the FY93-FY97 (Eighth Plan) period amount to Rs. 177 billion (US$4,960 mi1lion equivalent) and Rs. 380 billion (US$9,039 million) during the Ninth plan period. The investment program includes capital expenditures for the implementation of the EAP. The Bank would Initially finance US$400 million. A breakdown of costs and the financing plan is shown in Schedule A. External co-financing will be raised and the use of the Bank's ECO program to help mibilize private financing and supplement the Bank loan, in particular for the joint sector projects is being explored. Amounts and methods of procurement and of disbursements, and the disbursement schedule, are shown in Schedule B. A timetable of key project processing events and the status of Bank Group operations are given in Schedules C and D, respectively. A map is also attached. The Staff Appraisal Report, No. 11827, dated June 4, 1993, is being distributed separately. 18. Environmental and Resettlement and Rehabilitation Aspects. NTPC has realized that its environmental management systems need to be further developed beyond the mere compilation of environmental data for compliance purposes towards the pro-active identification and mcnagement of increasingly complex environmental and socio-economic issues. During the preparation of the proposed project, NTPC adopted a resettlement and rehabilitation (R&R) policy which will be applied to all its operations and which is broadly consistent with the Bank's operational directives. NTPC also formulated a comprehensive EAP in consultation with the Bank, in order to strengthen its environmental management practices and to address outstanding environmental and R&R problems. The objectives of the RAP ares (i) to rationalize and improve NTPC's organizational structure for environmental management at the corporate and plant levels; (ii) to improve environmental monitoring and the preparation of environmental impact assessments; (iii) to execute a specific program of remedial environmental measures for NTPC's existing power stations; and to address outstanding R&R issues and to upgrade NTPC's capability to prepare and execute R&R programs. The ZAP covers all NTPC power stations and supports the required institutional strengthening of NTPC to deal effectively with environmental and R&R problems. It includes investments to enable existing plants to meet the latest GOI environmental standards. The EAP also includes training of ITPC staff and technical assistance to help undertake studies and implement environmental projects. 19. Agreed Actions. Agreement has been reached with NTPC and the Government on the following: (i) Bank funds can only be used for NTPC power stations which have met the eligibility criteria given in para. 16; (ii) for  -6- joint venture projects to be eligible for Bank financing the same eligibility criteria as for NTPC's own projects would apply, suitably modified with respect to Government clearances and the signing of a Power Purchase Agreement satisfactory to the Bank; (iii) NTPC shall furnish to the Bank, for the Bank's review, not later than December 31 of each year, starting December 31, 1993, its financial projections, including its investment program and financing plan; (iv) GOI confirmed that adequate and timely supplies of fuel and financing for the associated transmission systems for Rihand I: and Vindhyachal II will be made available and that adequate measures have been taken to ensure the coordination of construction sohedules; (v) NTPC shall create, not later than December 31, 1993, an equitable mortgage/charge in favor of the Bank on its unencumbered assets by way of security for the proposed loan; (vi) NTPC will implement the Environmental Action Plan dated May 10, 1993 agreed with the Bank; (vii) NTPC will implement the agreed Resettlement Actions Plans in a manner satisfactory to the Bank; (viii) NTPC shall carry out socio-econoric surveys not later than December 31, 1994, to ascertain the present socio-economic status of Project Affected Families of ongoing Bank financed projezts and draw up and implement an agreed remedial action program thereafter; (ix) NTPC shall submit to the Bank not later than December 31, 1993 the scope of the financial management systems review to be undertaken and discuss with the Bank not later than June 30, 1994 the implementation of the recommendations; (x) NTPC shall furnish to the Bank, not later than seven months after the close of each fiscal year, its audited financial statements, as well as the audit reports of the special account and withdrawals made against statement of expenditures for the project; (xi) NTPC shall, not later than March 31, 1994, enter into regional bulk power supply agreements satisfactory to the Bank with all the SEBs provided that at least two more such agreements will be signed not later than December 31, 1993; (xii) GOI to settle remaining SEBs arrears through Central appropriations in accordance with an agreed schedule; (xiii) NTPC shall take all necessary steps to maintain its accounts receivables at a level not exceeding an amount equivalent to the preceding two months; (xiv) NTPC shall discuss with the Bank the results of the study on alternative strategies for financing NTPC's long term development not later than September 30, 1994 and shall thereafter implement the agreed recommendations; and (xv) NTPC shall take all necessary measures to produce, starting from FY94, funds from internal cash generation equivalent to not less than 15Z of its capital expenditures (three-year moving average) and not less than 20? in each fiscal year thereafter. 20. Project Benefits. The proposed project would: (a) improve commercial discipline in the power system in India through the implementation of NTPC's new commercial and investment policies; (b) help NTPC meet its targets for capacity additions through in-reased mobilization of funds from internal resources, domestic and foreign capital markets as well as from the private sector through joint venture operations; (c) upgrade environmental performance of NTPC power stations and make its new power plants environmentally more sustainable; and (d) strengthen NTPC's environmental and resettlement and rehabilitation management capability. Of India's proposed investments Li thermal generation capacity, those of NTPC are among the lowest-cost options and warrant support when overall investment resources are constrained and an increasing share of the total funds available is devoted to rehabilitation of existing generating facilities and strengthening the transmission and distribution system. It would help meet the energy needs of the Indian economy at a relatively low cost and high efficiency to support the far reaching macro-economic and structural adjustment program.  21. Risks. The project does not pose any particular technical risks as proven technologies will be utilized and project implementation vill follow practices well-established at NTPC. Its investment program is constrained more by the availability of financing than by the demand for electricity or by its implementation capability. The core investment program has been prepared taking into account NTPC's capability to raise resources through internal cash generation and from the capital markets. NTPC's main risk Is financial and relates to its ability to recover its charges from its clients, the State Electricity Boards. As long as it recovers, the level and structure of the tariff will safeguard its financial position and provide adequate self- finanring for the implementation of its investment program. Special attention has therefore been paid during pro3ect processing to develV, Ag satisfactory commercial policies and arrangements which would ensure sa-isfactory revenue recovery, and would allow NTPC to divert supply from non paying customers and direct !nvestments to the financially viable SEBs. The environmental risks associated with this project will be minimized through the implementation of the ZAP, which includes an institutional strengthening component and provides for implementation of improved resettlement and rehabilitation policies. Implementation of the EAP will ensure that NTPC power stations will operate in an environmentally sustainable manner. 22. Recommendation. I am satisfied that the proposed loan would comply with the Articles of Agreement of the Bank and I recommend that the Executive Directors approve the proposed loan. Lewis T. Preston President Attachments Washington, D.C. June 4, 1993  Schedule A INDIA NTPC POWER GENERATION PROJECT Estimated Coat and Financing Plan ^/ (US$ million) Estimated Cost and Financing Plan: Components FYO8-FY97 FY8-2002 FYOS-FYB? FYO8-FY2002 ------- R.blllon-- - --'US8 million- Funding R.auiremgnte Ongoelia Projects 78.6 10.? 2,208 268 No! Projects: -To be Ititated During 8th Plan 00.6 269.6 2,647 0,452 - To be Initiated Ouring 8th Plan - 99.9 - 2,824 - Subtotal - Now Project. 9.6 869.5 2,647 8,776 Total - Generation 178.8 880.2 4,850 9,039 Joint Sector Project(s) 4.0 - 110 - Total Financing Requirements 177.8 880.2 4,960 9,089 Financing Plan NTPC' Not Internal Cash Generation 41.4 76.6 1,187 1,808 Borrouinst Loans Contracted 86.0 - 1,078 - Proposed Bank Loan 14.8 - 400 - Future Bank Loans 20.4 10.0 629 271 Other Loans to be Arranged 85. 245.6 087 5,826 Bonds 18.2 48.0 504 1,140 Total Borrowing 124.8 804.4 8,448 7,2a6 Equity 11.1 - 850 - Total Sources 177.8 880.2 4,960 9,080 IV Include. Txes eand Duties of about US8 1,884 million equivalent.  Schedulo 0 NIPC POWER GENERATION PROJECT Summarv of Pronosed Procurement Arronoements (vu8 million equivelent) Bank Financed Non-Bank Finaned Project Element 1C t LC9 other Totel Cost 1. Clvil Works 60 I - - 689 (16) (0.6) - ()(16.6) 2. Material a Equipmaet 2561 7 25 1885 8910 (884) (4.6) (20) C-) (358.5) D. Erection Services 28S - s6 829 (25) (-) (-) C-) (25) 4. Consulting Services a) Engineering Supervision 4 3 3 81 85 b) Technlcal Assistance & Training - - - 0 TOTAL 2904 8 29 18o 4082 (874) (5) (1) C-) (400) Dl buresamnts Amount of the % of Loan Allocatod Expenditure Cateorz MOUS8 Ecuivelent) so be Finanned (1) Equipment and materials 825,000,000 100I of foreion expenditur", 100% of local ecpendi- turee (ox-fctory cost) SOX of other local expend-itures for other Items procured locally (2) Eecation and 84,000,000 7O% Installation, Including civil works (a) Consultants' sorvices 1,000,000 lOOX and training (4) Unallocated 40,000,000 TOTAL  - 10 - Schedule C INDIA NTPC POWER GENERATION PROJECT Timetable of Key Processing Events (a) Time taken to prepares 18 months, November 1991- April 1993 (b) Prepared bys National Thermal Power Corporation (c) First Bank missions November 1991 (d) Appraisal mission departure: April 1993 Ce) Negotiations: May 1993 (f) Planned Date of Effectiveness: September 1993 (g) List of relevant PCRs and PPARss PCR Cr.lLn. No. Project PCR Date PPAR No. Cr. 685-IN Singrauli Thermal Power Hay 1987 6784 Cr. 793-IN Korba Thermal Power July 1987 10854 Cr. 874-IN & Ramagundam Thermal Power March 1990 10854 Lu. 1648-IN Cr. 1027-IN Second Singrauli Thermal December 1990 10854 Cr. 1053-IN Parakka Thermal Power December 1990 10854 Ln. 1887-IN & Cr. 1172-IN Second Korba Thermal January 1993 Ln. 2976-IN Second Ramagundam January 1993 'diermal Power Performance Audit Report (*) for Cr. 793-IN Korba Thermal Power February 1993 Cr. 874-IN & Lu. 1648-IN Ramagundam Thermal Power Cr. 1027-INf Second Singruali Thermal Cr. 1053-Ill & Lo. 1887-I Farakka Thermal Power (*) Cluster Audit for NTPC  - 11 - SCEZDULE D ___________ PAGE 1 of 5 TEE STATUS OF BANK GROUP OPEUTIoNs ID INDIA A. SASTRKNS OF BADE LOAS AND IDA CRZDITS (An of March 31, 1993) US$ Millton (net of cancellationh) Loan or Fiscal Year ------------------------------- Credit No.of Appr Purrase I=BD IDA 1/ UndLbursed 21 11 96 Loens/ 7213.4 11 162 Credits fully diabursedleancelled 12314.5 1356-IN 1983 Upper Indravati Eydro Power - 170.00 18.29 2393-IN 1984 Dudh chu. Coal 109.00 - 16.50 2442-IN 1984 Farakka 11 Thermal Power 278.80 - 38.82 1496-IN 1984 Gujarat Pedium Irrigation - 16. 30 31.49 8P-20-IN 1984 Indlra Saxovar Hydroaeletric ?.3.84 17.35 2416-IN 1984 Indira Sarovar Sydroelecatric 17.43 - 8.53 2415-IN 1984 Madhya Pradesh Fertililer 167.10 - 0.94 2387-IN 1984 Dhaa Sheva Fort 250.00 - 19.26 S-16-IN 1984 Perlyar Vaigai SS Irrigation - 17.50 7.33 1426-IN 1984 Population III - 70.00 1.06 2417-IN 1984 Railways Electrificatlon 279.20 - 12.67 1424-IN 1984 Rainfed reaJ Watershed Dev. - 25.52 10.91 1454-IN 1984 Tamil Nadu Water Supply - 36.50 19.04 S1-12-IN 1984 Tamil Uadu Water Supply - 36.50 10.93 1483-IN 1984 Upper Canua Irrigation - 105.43 28.94 1544-IN 1985 Bombay Urban Development - 100.92 25.75 2544-IN 1985 Chandrapur Thermal Pover 280.00 - 87.18 1613-N 1985 Indira Sarover 8ydro4eletriL - 13.20 17.21 2498-I8 1985 Jharia Coklg Coal 57.70 - 2.42 2582-Il 1985 Xerala Power 176.00 - 124.22 1514-1l 1985 Kerala SocLal Forestry - 27.12 3.14 2497-IN 1985 Romerda (Gujarat) Dam and Power 200.00 - 165.54 1523-IN 1985 Ratonal d 4rc. Eztension I - 33.02 0.42 -534-IN 1985 National Nigwhays 133.00 - 40.36 1611-IN 1985 National Social Forestry - 154.09 0.11 2555-I8 1985 Rlhand Power Transmission 202.00 - 8.81 1569-IN 1985 Seond National Agricultural Ext. - 45.S9 18.36 1665-IN 1986 Andhra Pradesh SI Irrigation - 140.00 103.84 2662-IN 1986 Andhra Pradesh IT Irrigation 41.00 - 41.00 2660-IN 1986 Cement Industry 165.00 - 35.71 2674-IN 1986 Comblied Cyole Power 485.00 - 15.25 2730-IN 1986 Cooperative Fertllser 111.06 - 7.58 1643-IN 1986 Gujarat Urban - 50.34 20.85 2661-IN 1986 ICICI - Cement Industry 35.00 - 10.92 1622-IN 1986 Kerala Water Supply and Sanitation - 21.80 7.71 1621-I8 1986 Maharashtra ComposLt Irrlgation - 160.00 169.40 1631-IN 1986 National Agricultural Research II - 59.88 25.02 1619-IN 1986 West Bone"a iNuor Irritgation - 69.17 63.25 1623-IN 1986 West BeGgal Population - 45.85 11.23 1737-IN 1987 BLhar Tub ells - 22.29 7.69 1750-IN 1987 Bembay Water Supply a Soweragae In - 145.00 82.44 2769-IN 1987 Bombay Water Supply a Sewrage III 40.00 - 40.00 2796-IN 1987 Coal linlng & Quality Improvement 340.00 - 96.59 1757-IN 1987 Gujarat Rural aoads - 119.60 81.70 2827-IN 1987 Karnataka Power 260.00 - 180.52 2846-IN 1987 Madras Water Supply 53.00 - 32.97 1754-IN 1987 National Agric. Extension III - 70.18 31.35 2844-IN 1987 National Capital Power 425.00 - 155.21 1770-IN 1987 National Water Management - 114.00 62.36 2785-IN 1987 Oil India Petroleum 140.00 - 15.08  - 12 - r ~~~~~~~~~~~~~~~~~~~~~~~~~SOIIDULE D PAGE 2 of S US$ Million (net of canellatlons) Loan or Fiscal Year - ----- ------- ---- Credit Ro.of App: Purpose IUBD IDA 11 Undisbursed 21 2845-1D 1987 Taloher Thermal 375.00 - 243.06 2813-ZN 1987 Teleomemnilcatlons IX 168.00 - 8.83 1780-ZN 1987 Uttar Pradasb Urban D.velopm.nt - 120.95 62.44 1931-DC 1988 Eambay & Madasa Population - 57.00 16.54 2928-1N 1988 Indus. Fin. & Tech. Aset. 360.00 - S0.70 2938-ZN 1988 Karmataka Power II 220.00 - 178.31 1839-ZN 1988 National Dairy 1I - 160.00 O.G9 289S-IN 1988 National Dairy 1l 200.00 - 200.00 293S-ZN 1988 Railway ModernlsatLan III 270.00 - 54.15 1923-ZN 1988 Tbail R*du Urban Dev. - 269.69 146.93 3093-ZN 1989 Blectr-nLca Industry Dev. 8.00 - 7.50 S058-ZN 1989 Evport Development 120.00 - 27.27 3094-DN 1989 ICICI - Electronice md. Dev. 101.00 - 41.12 3059-IN 1989 ICICI - Export Devolopment 175.00 - 85.94 3095-IN 1989 1DBI - Eleetronlcs Ind. Dev. 101.00 - 75.65 3096-ZN 1989 Maharashtra Power 354.00 - 312.82 3024-1Z 1989 Nathpa Jhakri Power 485.00 - 446.29 1952-ZN 1989 national Seds III - 150.00 62.78 2022-ZN 1989 National Sericulture - 147.00 102.19 2057-IN 1989 Nat-l. Family Welfare Trag. - 113.S0 94.63 3044--N 1989 Petroleum Transport 50.00 - 15.00 2994-ZN 1989 States Roads 170.00 - 170.00 1959-ZN 1989 States Roads - 80.00 23.94 2010-IN 1989 Upper Krlshna Irrigation, S - 160.00 99.71 3050-ZN 1989 Upper Krlshna Irrigation SI 85.00 - 85.00 2008-ZN 189 Vocational Training - 211.02 164.60 3196-ZN 1S0 Cement Industry Restructuring 300.00 - 213.26 2115-IN 1980 Hyderabad water Supply - 79.90 56.31 2064-ZN 10 Industrial Tecbnology Development - 55.00 50.25 3119-ZN 1990 Industrial Tenolovgy Development 145.00 - 98.69 3237-Z 1990 Narthern Regi8n Trenauission 485.00 - 449.97 2133-IN 1990 Population Tr ainig VII - 81.92 68.41 3239-ZN 1990 Prtvate Pomer UtilitLes I (2EC) 98.00 - 75.56 2076-ZN 1990 Pumiab ZrrigationJDrainge - 145.28 121.23 2158-ZN 1990 Tamil 8Udu Integrated Nutritlan ZZ - 86.15 77.06 2130-ZN 1990 Tech"ioan Education I - 210.74 169.36 2100-ZN 1990 Watershed Development (Hills) - 75.00 65.95 2131-ZN 1990 Watershed Development (Plains) - 55.00 52.62 3260-ZN 1991 A.P. Cyclone Emergency Reconstruction 40.00 - 40.00 2179-ZN 1991 A.P. Cyclone *argency Reconstruction - 170.00 9.20 2241-IN 1991 Dam Safety - 1S0.00 122.68 3525-ZN 1991 DM Safety 23.00 - 23.00 3364-Z8 1991 Cbs Flaring Reduction 450.00 - 282.16 2173-ZN 1991 ICDS I (Orana & Andbra Pradesh) - 96.00 83.45 3334-ZN 1991 Sndu trial Pollution Control 124.00 - 107.06 2252-ZN 1991 InduatrLal PollutLin Control - 31.60 30.48 2234-ZN 1991 Maharashtra Rural Water Supply - 109.90 93.51 3259-ZN 1991 Petrochemicals ZI 233.00 - 156.74 3258-ZN 1991 Petrochenicals ZI 12.00 - 11.00 3344-ZN 1991 Private Power Utlities II (BSES 200.00 - 141.61 2215-N 1991 Tasmi Rad Agricultural Developmet - 92.80 76.88 3300-ZN 1991 TaSil Radu Agricultural Dovelopent 20.00 - 20.00 2223-IN 1991 Technician Education II - 307.10 271.55 2300-ZN 1992 Child Survival and Safe Motherhood 214.50 176.01 2394-ZN 1992 FasLly Welfare (Urban Slum) 7 - 9.00 80.09 2328-ZN 1992 Mhbarasbtra Forestry - 124.00 116.48 2350-ZN 1992 ational AIDS Control - 84.00 73.99 3436-1Z 1992 Power Utilities Efficiency 265.00 - 250.98 3498-ZN 1992 Secnd Maharashtra Power a 350.00 - 350.00 3470-r 1992 Secoad Rational Highway 153.00 - 153.00 2365-ZN 1992 Second Rateonal Highway - 153.00 150.77 2329-ZN 1992 Shrimp and Fish Culture - 5.00 83.39 2341-ZN 1992 West Bensal Forestry - 34.00 28.35 2433-ZN 1993 Agricultural Development Rcjastban - 106.00 96.45 2439-IN 1993 Sihar Plateau Development - 117.00 106.00  - 13 - PACE 3 of 5 US$ KLUIci. (not of cancellations) Loa or Piscal Year ----------- -- Credlt Mo.of Apr Purpoe RD DA 1/ niureed 21 2450-I 1993 JhAria iue Lire Control * - 12.00 11.94 3577-11 1993 PoergrLd System Deelopmet 350.00 - 324.96 3544-11 1993 Renevable Resoues Devlopmnt * 75.00 - 75.00 2449-1E 1993 Renewable Resources Developmet * - 115.00 113.27 2409-IN 1993 Rubber e - 92.00 92.17 2470-IN 1993 Second Integrated Child Dow. * - 194.00 196.55 2448-ZN 1993 Social Safety Net Sector Adjustmt - 500.00 246.17 Total 18025.7 19442.8 10500.90 of whlch has been repaid 3793.8 966.0 Total nov outstanding 14231.9 18476.8 ,tmt Sold 133.8 of which has been repaid 133.8 Total no hld by ank nd IDA 14231. 18476.80 Total undisbursed (eludig *) 5503.7 4078.2 1J ID Credit timts for SDR-dnamiated Credlts a expressed in ters of thelr US dollar equivalnts. a establishd at the ti. of Credit negotiations and as subsequetly presented to the Board. 21 Undisbursed amonts for SI-denominated IDA Crets are drlved as the undLsbursed balane expressed in 50R equivalents (in tun derived as the difference between the orignal pricipUl expressed in SR3 (basd en the exchange rate " established at the tim of Credit negotiations) and the cumlative dLsbursements conveted to SDR equivalents at the exchange rat prevaili at the respective dates of dlsbursemets less cancellations expressed in SDR equivalents conert to US dollar equvalents at the 8DRIUS dollar exchage rate in effect on J e 30 1992. St PrLor to exchaGe adjustment. * Not yet effective.  - 14 - 8CE8DULE 0 PAGE 4 OP S B. STXUU OF WC VSNTS (As of March 31. 1993) Amount (US$ million) PLScal Year Company Loa Equty Total 1959 RepubiLe Forge CompanW Ltd. 1.50 __ 1.50 1959-92 Kirloskar Oil En8anea Ltd. 0.85 -- 0.85 1960 Assam SIllmnanite Ltd. 1.36 -- 1.36 1961 L.S.B. Pumps Ltd. 0.21 -- 0.21 1963-66 PrecaLion Bearings India Ltd. 0.65 0.38 1.03 1964 Fort Closter Industries Ltd. 0.81 0.40 1.21 1964 Lahabmi MachLne Works Ltd. 0.96 0.36 1.32 1964-?3-79190 Mahindra Ugine Steel Co. Ltd. 11.81 2.84 14.65 1967 IndLan Eploslves Ltd. 8.60 2.86 11.46 1967 Jayahree Ohemicals Ltd. 1.05 0.10 1.15 1969-70 Zuari Aro-Cbhmicals Ltd. 15.15 3.76 18.91 1977-87 Escorts LLmited 15.55 -- 15.55 1978-87191193 lousing Dovelopmeat Fiunace Corp. 106.32 2.10 108.42 1980/82/87189 Deepak Fertillser and Petrochemicals CorporatLoan Ltd. 7.50 4.23 11.73 1981-82 Uagarmuna Coated Tubes Ltd. 1.50 0.24 1.74 1981-82 EaserJima Steels LimLted 2.88 0.24 3.12 1981-86-89 Tat. Iron and Steel Company Ltd. 72.14 24.50 96.64 1981-90/93 Mahinds & Mahindra Ltd. 29.71 9.30 39.01 1982 Ashok Leyland Limlted 28.00 -- 28.00 1982 Coromandel Fertilizers LLLted 15.88 -- 15.88 1982 The Bombay Dyeing and Manufacturiag Co. Ltd. 18.80 __ 18.80 1982-87 IT Slgnode 2.99 1.01 4.00 1982-87 The Indian Rayon Corp. Ltd. 14.57 -- 14.57 1983 Bbarat Forge Company Ltd. 15.90 -- 15.90 1984-86 The OvalLor Rayon SlIk Manufacturing (Weaving) Co. Ltd. 15.95 15.95 1985 Bajoj Auto Ltd. 23.93 -- 23.93 1985 Nadi Cemnt 13.05 -- 13.05 1985-86190-91 India Lease Developmmet Ltd. 8.50 0.78 9.28 1985/91 Bihar Sponge 15.24 0.66 15.92 1986 BOaJ Tempo Limited 30.54 - 30.54 1986193 IndLa Zquipment L Lasing Ltd. 5.50 0.30 5.80 1986 Larsen and Toubro Ltd. 21.?8 -- 21.78 1986-87 The Great Estern ShippLin Company Ltd. 8.00 13.89 21.89 1987 Export-Import Bank of India 14.34 -- 14.34 1987 Oujarat Fusion Glass Ltd. 7.52 1.70 9.22 1987 Gujarat awnada Valley Fertiliser 38.07 -- 28.07 1987 Hero Bonds Motors Ltd. 7.74 -- 7.74 1987 91ndustan Motors Ltd. 39.14 __ 39.14 1987 The Gujarat Rural Rousing FLnance Corp. -- 0.19 0.19 1987 Wino LLmited 4.70 -- 4.70 1987-89/90 Titan Watches Lilmited 22.02 1.08 23.10 1988 Invel Tranmissiosl Ltd. -- 1.07 1.07 1989 Abmedabad Electricity Company Ltd. 20.83 -- 20.83 1989 WTI Advanced Tebnology -- 0.20 0.20 1989-90 Keltron Telephon Instruments, Ltd. -- 0.56 0.56 1989-92 Gujarat State Fertilizer 40.42 -- 40.42 1990 JSB India Securities Firms -- 0.37 0.37 1990 UCAL Fuel Systems Ltd. - 0.63 0.63 1990-91 Tat& Electric 111.88 -- 111.88 1991 ATIC Indu tries Export Finance 0.28 -- 0.28 1991 Bombay Elcatric 68.00 68.00 1991 CESC Ltd. 22.34 -- 22.34 1991 Export Finance - AFDC 0.35 -- 0.35 1991 NErdilla Oxides and Electrolcas Ltd. -- 0.29 0.29 1991 Tndust. Credit 8 Investment Corp. of IndLa -- 26.60 26.60 1991193 Infrastructure Loasing & Financial Services 15.00 4.64 19.64 1991 TSDCS Developmnt FLnace Companies -- 2.05 2.05 1991 TrLvenl Pool Intairdeil Ltd. (TPIL) -- 0.93 0.93 1991 Varun Transport, Storae & Coamunications 17.04 3.06 20.10 1992 Arviad Kill* 22.13 7.81 29.94  - 15 - PAG 5 OF 3 eA: (3USS atlIlo) .8051 Year l:eOU Leo Eqplty Total 1992 Black 11-OS-I -- 8.20 8.20 1992 NDUS Vt -- 1.01 1.01 1992 atak nd 0.. -- 0.t 1992 Itpos Dear. 40.00 5.77 45.77 1992 S" arl 11.0 -- 11.50 1999 CzditoLtal W1 - 0.51 0.51 1993 NICCO-UCO 0.00 0.25 3.25 TOTAL 0ROWS 1024.14 134.89 1159.03 Leest CaonellatLo, T.x.Lnations. Zxoban Ajust.est, Nspajyuets, rletufis and S1et S02.42 28.97 551.39 ov gold by IFC 821.72 103.92 427.44 Adilsbursed 125.21 31.29 156.50  IBRD 24799 8230 82'4' To Jn 83200 INDIA RA IbCA pan NTPC POWER GENERATION PROJECT IN liJunction PROJECT SITE LAYOUT FOR RIHAND It : ,Dom AND VINDHYACHAL 11 POWER STATIONS r Obrn / ,-.I! .j/ t , ;gorduo JunCton on EZ PROPOSED POWER PLANT FACIILTIES E:;l POWER PLANT FACILTIES IN OPERATION ASH DISPOSAL AREAS SINGRAULI COAL FIELDS MERRY4G-ROUND COAL TRANSPORTATION SYSTEMS Sunhera RAILROADS Rani Toft N RAILROAD STOPS ROADS Rn! RIVERS\I \\ _ DAMS JMirchrdhuri O VILLAGES -. _ --STATE BOUNDARIES S / ! 4 ~~~U T T A R P R A D E S H 24A15 MADHYA P R A D E S H 2 001151 co 2 /1 1 i \ / A I V /I Ji &~~GOI CLL 4 = ~~~~~ < 5;rl~~Sigra,uliR.n 0G Rek \\ MO#R / t / Q7lv g /la^;a sr<zs cf <5 */ \} Pipr a~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~-' 4,4--iSg < MOMtE P R STATION K ULI POWER STATION <~~~~~~~~~~~~~~~~~~~- N, , Bcxidhon 0 4 dph 9 ' RIHAND POWER STATION ~~STAGE1A~~ AshdqpIa for Rh1bu.d cfp. T.f d-....kat d iTlM ,d r R^ a tfI OMETE 24 -d0d b.. d 2 4 . 4 16 12 14 lf6 24-00 MILES 82'30 8285 A3D001