Quick Facts

Where the impacts of the investment may be experienced.
  • India
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
  • Asian Infrastructure Investment Bank (AIIB)
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.
Board Decision Date: 2017-09-27
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 or Client: Power Grid Corporation of India Limited (POWEGRID)
The holder of the loan, grant, or other investment.
The service or industry focus of the investment. A project can have several sectors.
  • Energy
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.

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Primary Source

Original disclosure @ AIIB website
Updated in EWS: 2017-11-08
Disclosure Date: 2017-02-15
India: Transmission System Strengthening Project

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
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.
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 In addition, the AIIB has a Bank Oversight Mechanism. According to AIIB's policies, "people who believe they have been or are likely to be adversely affected by a failure of the Bank to implement the ESP may also submit complaints to the Bank's oversight mechanism in accordance with the policies and procedures to be established by the Bank for such mechanism." However, at the time of writing, it is unclear what the exact scope and function of this Oversight Mechanism will be.
Bank Documents