Indigrid (IFC-45645)

Regions
  • South Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • India
Geographic location where the impacts of the investment may be experienced.
Specific Location
Chattisgarh, Madhya Pradesh, Rajasthan, Jharkhand, West Bengal, Telangana
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
A
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
Apr 13, 2023
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
India Grid Trust
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Infrastructure
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)
$ 150.00 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.
Loan Amount (USD)
$ 150.00 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)
$ 355.00 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.
Bank Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS May 12, 2023

Disclosed by Bank May 9, 2023

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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.

According to IFC, the proposed investment comprises of a loan by IFC of up to US$150 million in the form of Non-Convertible Debentures (NCDs) issued by India Grid Trust (IndiGrid or the Company). These NCDs will be rated, listed, secured, redeemable and denominated in Indian Rupees. The proceeds will be used by the Company to support its investments or loan infusion in Special Purpose Vehicles (SPVs) that house the transmission assets.

These investments are being used to refinance existing debt at these SPVs. IFC’s proceeds will be directed to 5 Transmission Line assets namely:

1.Jabalpur Transmission Company Limited or JTCL (994 km, 2 lines, commissioned in 2015): JTCL operates two EHV overhead transmission lines of approximately 992 ckms in the states of Chhattisgarh and Madhya Pradesh comprising one 765 kV double circuit line of approximately 757 ckms from Dharamjaigarh (Chhattisgarh) to Jabalpur (Madhya Pradesh) and one 765 kV single circuit line of approximately 235 ckms from Jabalpur to Bina in Madhya Pradesh.

2.RAPP Transmission Company Limited or -RTCL (403 km, 1 line, commissioned in 2016): RTCL operates one EHV overhead transmission line of approximately 403 ckms in the states of Rajasthan and Madhya Pradesh, comprised of one 400 kV D/C line from Rajasthan to Madhya Pradesh.

3.Odisha Generation Phase-II Company Limited or OGPTL (713 km, 2 lines, commissioned in 2017): OGPTL operates two EHV overhead transmission lines of approximately 711 ckms in the states of Chhattisgarh and Odisha comprising one 400 kV double circuit line of approximately 103 ckms from Jharsuguda (Chhattisgarh) to OPGC (Odisha) and one 765 kV double circuit line of approximately 608 ckms from Raipur to Jharsuguda in Chhattisgarh.

4.Purulia Kharagpur Transmission Company Limited or PKTCL (546 km, 2 lines, commissioned in 2017): PKTCL operates two EHV overhead transmission lines with a total circuit length of approximately 545 ckms in the states of West Bengal and Jharkhand, comprising one 400 kV D/C line of approximately 322 ckms from Kharagpur (West Bengal) to Chaibasa (Jharkhand) and one 400 kV D/C line of approximately 223 ckms from Purulia (West Bengal) to Ranchi (Jharkhand).

5.Maheswaran Transmission Line or MTL (474 km, 2 lines, commissioned in 2017): MTL operates two EHV overhead transmission lines with a total circuit length of approximately 476 ckms in the state of Telangana, comprising one 400kV D/C line of approximately 197 ckms from Maheshwaram to Mehboob Nagar in Telangana and one 400kV D/C line of approximately 279 ckms from Nizamabad to Yeddumailaram in Telangana. MTL also has four 400kV line bays.

These 5 assets were selected from a list of 13 assets in the invIT portfolio, based on an initial Environmental and Social (E&S) Screening and thereafter an Environmental and Social Due Diligence (ESDD) conducted by a third-party consultant.

This project is Categorized as A according to IFC’s Policy on Environmental and Social Sustainability.

People Affected By This Project
People Affected By This Project refers to the communities of people likely to be affected positively or negatively by a project.

The project consisting of 5 operational transmission line assets has  Critical Habitat triggers in certain segments which will need measures to manage critical habitat values to achieve net gain.  In addition, there are outstanding as well ongoing social impacts from the transmission line, including impacts on access to natural resources to indigenous communities that need to be managed and addressed in line with requirements of Performance Standards. 

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

The proposed IFC investment consists of debt investment of US$335 million comprising an A-Loan of up to US$150 million and mobilization of up to US$185 million. The proposed investment comprises of a subscription by IFC of up to US$150 million to Non-Convertible Debentures (NCDs) issued by IndiGrid.

*Definition of Non-Convertible Debentures (Source: https://economictimes.indiatimes.com/definition/non-convertible-debentures):The debentures which can't be converted into shares or equities are called non-convertible debentures (or NCDs). These are used as tools to raise long-term funds by companies through a public issue.

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.

India Grid Trust (IndiGrid) is India’s first and largest power sector infrastructure investment trust, a yield platform comprising thirteen transmission assets and two solar assets (which are not included in the IFC’s investment), aggregate assets under management (AUM) of US$2.6 billion across 19 states spanning across 7,790 ckms (42 lines), transformation capacity of 14,550 million volt-amps or MVA (12 sub-stations) and 100 MW (AC) of renewable capacity. It is sponsored by Esoteric II Pte Ltd (an affiliate of Kohlberg Kravis Roberts, KKR), a leading global investment firm.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - India Grid Trust 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.

India Grid Trust
Mr. Ramneek Teng / Mr. Giriraj Ajmera
Head – Operational Excellence / Head-Corporate Finance
+91 99104 90801 / +91 76661 52507
ramneek.teng@indigrid.com
Unit No. 101, First Floor, Windsor, Village KoleKalyan, off CST Road, Vidyanagari Marg, Kalina, Santacruz (East), Mumbai – 400098
www.indigrid.co.in

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

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How it works