India: Transmission System Strengthening Project (AIIB-000006)

Countries
  • India
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
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Sep 27, 2017
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Power Grid Corporation of India Limited (POWEGRID)
The holder of the loan, grant, or other investment.
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, etc.
Investment Amount (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. 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, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ AIIB website

Updated in EWS Jun 29, 2020

Disclosed by Bank Feb 15, 2017


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Project 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
  • Asian Infrastructure Investment Bank (AIIB)

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
Private Actors Description

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.

Contact Information

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.