12 Dec 2019
EUR 17.5 million
Infrastructure, transportation and telecom
|Date of agreement:||19 Dec 2011|
|Customer:||Power Grid Corporation of India Ltd.|
|Amount in EUR:||EUR 76.1 million|
|NACE sector / loan type:||Electricity, gas, steam and hot water supply|
The loan has been provided for financing an 800 kV high-voltage direct-current (HVDC) bi-pole transmission line from Biswanath Chariyali (Assam) to Agra (Uttarpradesh).
The borrower plans to construct a high-capacity transmission system for transfer from hydropower stations in northeast India to the areas of the country experiencing a power deficit, in particular the northern and western regions. It is expected that the hydropower generation potential of the northeast region will grow by 50,000 MW in the future. This growth will play a key role in supplying energy to the deficit areas. The total length of the transmission line to be built is approximately 1,900 kilometres. The line will require 4,280 towers, while 90 kilometres of it will be built as an earth electrode line.
The total cost of the project is estimated to be USD 2.2 billion. Swedish ABB will provide the HVDC multi-terminal system package, including converter stations, repeater stations and ground electrode stations for HVDC transmission system as well as HVAC sub-stations at Biswanath Chariali and Agra.
Besides a loan from NIB, the project has received a loan from commercial banks guaranteed by the Swedish Export Credits Guarantee Board as well as a loan from the Asian Development Bank.
The project will strengthen NIB's member country technology supplier. The improved supply of electricity in northeast India will have a positive impact on the region's development.
The advantage of the HVDC technology is its ability to transmit large amounts of power over long distances with lower technical losses than alternating current systems. Since the access to reliable electricity is of major importance for the development of local communities in India, the construction of the transmission capacity is expected to contribute to positive social effects. The per capita consumption of electricity in India is likely to increase by 2-3% on average, with the main beneficiaries being consumers in India's rural communities.
The project does not require any physical resettlement of villagers for the transmission line part of the project. For the three HVDC terminals and the earth electrode stations to be built there could be a limited number of persons that will need to be physically resettled. A detailed assessment of the project's social impact has been undertaken to identify potentially affected families and consult them about the mitigation measures.
As a general rule, the transmission line is located away from major towns, whenever possible, to account for future urban expansion. The route has been selected so that it causes a minimum of damage to existing forest resources and wetlands. National parks and sanctuaries have been avoided completely.