India: Transmission System Strengthening Project (AIIB-000006)

Countries
  • India
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Infrastructure Investment Bank (AIIB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Sep 27, 2017
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Power Grid Corporation of India Limited (POWEGRID)
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 303.40 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Campaign Documents
Primary Source

Original disclosure @ AIIB website

Updated in EWS May 10, 2023

Disclosed by Bank Feb 15, 2017

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

The Project will enhance the capacity of electricity supply in the Southern Region of the Country. The proposed project is a subset of the “HVDC Bi-pole Link between Western Region (Raigarh, Chhattisgarh) and Southern Region (Pugalur, Tamil Nadu) – North Trichur (Kerala)”, which comprises following three related schemes to expand the interstate transmission network in western and southern India.

Scheme 1: a +800 kV HVDC link from Raigarh (Chhattisgarh, Western Region) to Pugalur (Tamil Nadu, Southern Region).

Scheme 2: 400 kV transmission segments from Pugalur to 5 other grid substations in Tamil Nadu state.

Scheme 3: +320 kV HVDC link from Pugalur (Tamil Nadu) to Trichur (Kerala).

The three schemes combined will be able to wheel 6.0 GW of power from Chhattisgarh state to the Pugalur hub, then transfer 4.0 GW into Tamil Nadu and 2.0 GW into Kerala. AIIB financing is proposed only for the 400 kV lines included in Scheme 2 (the Project), while the related substations (and Schemes 1 and 3) are to be financed by other financiers.

The Bank has decided to apply ADB’s Safeguard Policy Statement (2009) (ADB SPS) to the project.

POWERGRID is the project executing agency.The Project is expected to increase the availability and sustainability of power supply in the Project area.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The Project is estimated to cost US $303.47 million. The GoI has requested a loan of US $100 million from AIIB and a loan of US $50 million from ADB to help finance the Project (ADB’s Loan No. and Title: 3365-IND: Green Energy Corridor and Grid Strengthening Project). Any shortfall in the funds required would be covered by POWERGRID.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Power Grid Corporation of India Limited, a central transmission utility, engages in the transmission of power in India. The company is involved in planning, implementation, operation, and maintenance of inter-state transmission system, telecom, and consultancy services.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Power Grid Corporation of India Limited (POWERGRID) Client -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

AIIB:
Mr. Hongliang Yang
Project Team Leader/Senior Investment Operations Specialist
Email: hyang@aiib.org

POWERGRID:
Mr. Anil Jain
Executive Director, Corporate Planning
Gurgaon 122 001, India
Tel: +91 124 2571960
Email: aniljain@powergridindia.com

ACCOUNTABILITY MECHANISM OF AIIB

The AIIB has established the Accountability Mechanism for Project-Affected People (PPM).  The PPM provides “an opportunity for an independent and impartial review of submissions from Project-affected people who believe they have been or are likely to be adversely affected by AIIB’s failure to implement the ESP in situations when their concerns cannot be addressed satisfactorily through Project level GRMs or AIIB Management processes.” Two or more project-affected people can file a complaint.  Under the current AIIB policy, when the bank co-finances a project with another development bank, it may apply the other bank's standards. You can refer to the Project Summary Information document to find out which standards apply.  You can learn more about the PPM and how to file a complaint at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/how-we-assist-you/index.html.

The complaint submission form can be accessed in Arabic, Bahasa Indonesia, Bengali, Chinese, English, Tagalog, Hindi, Nepali, Russian, Turkish, or Urdu. The submission form can be found at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/submission/index.html.




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