POWER SYSTEM DEVELOPMENT PROJECT IV

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The Fourth Power system Development Project supports the Bank's Country Assistance Strategy for India 2005-2008, which establishes as one of its priorities the provision of adequate infrastructure to promote private sector-led growth. Investments will be aimed at improving the outcomes orientation and service delivery of Power Grid Corporation of India (POWERGRID), by: (i) facilitate more economic use of generation resources; (ii) providing greater grid stability; (iii) establishing the open access regime mandated in the new Electricity Act; and (iv) facilitating development of a power trading regime within the country and with India's neighbors. The objective of the project is to strengthen India's electricity transmission system in order to increase reliable power exchange between regions and states. The project will consist of one component, namely Transmission System Strengthening Schemes. The five investment schemes to be financed under this component have been identified following the eligibility criteria for Bank financing established in Power System Development Project (PSDP) project. These eligibility criteria include: (i) technical and operational justification; (ii) economic and financial justification; (iii) appropriate Government of India (GOI) clearances, including investment approvals and environmental clearances; (iv) adequate financing procurement and implementation plans; (v) compliance with environmental and social safeguards requirements; and (vi) proposed investments should be for strengthening of transmission system and inter-regional power exchange for the National Grid. The direct economic benefits from the proposed investments in transmission systems include: (i) greater availability of power from exchange of power across regions; (ii) reduction in system losses through system strengthening; and (iii) increased market efficiencies from power trading through short-term and long-term open access.

FY17 - Energy and Extractives

World Bank Group

Project

Power Generation (CCGT), Government