Docunent of

The World Bank

FOR OFFlCIAL USE ONLY

A-V RST7- /~.

-Rrqxt No. P-4818-IN

MEMORANDUM AND RECONMENDATION

OF THE

PRESIDENT OF THE

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

TO THE

EXECUTIVE DIRECTORS

ON A

PROPOSED LOAN

IN AN AMOUNT EQUIVALENT TO US$350 MILLION

TO INDIA

FOR THE

UTTAR PRADESH POWER PROJECT

May 25, 1988

This document has a restricted distribution and may be used by recipients only In the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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CURRNCY EQUVATS

Currency Unit - Rupees (Rs)

Rs 1.00 Paisa 100US$1.00 Rs 13.0 a/Rs 1.0 US$0.077Rs 1,000,000 US$76,923

a! Currency equivalences are those effective October 1st, 1987,unless otherwise indicated.

MEASURES AND EQUIVALENTS

1 Kilometer (km) - 1,000 meters (m) = 0.6214 miles (mi)1 Meter (m) = 39.37 inches (in)1 Ton (t) = 1 metric ton = 2,200 lbs1 Kilovolt (kV) = 1,000 volts (V)1 Kilovolt ampere (kVA) = 1,000 volt-amperes (VA)1 Megawatt (MW) = 1,000 kilowatts (kW) = 1 million watts1 Gigawatt-hour (GWh) 1,000,000 kilowatt-hours

ABBREVIATIONS AND ACRONYMS

GOI - Government of IndiaGOUP - Government of Uttar PradeshIBRD - International Bank for Reconstruction and DevelopmentICB - International Competitive BiddingLCB - Local Competitive BiddingLIB - Limited International BiddingSEB - State Electricity BoardUPSEB - Uttar Pradesh State Electricity Board

FISCAL YEAR

April 1 - March 31

FOR OFFICIAL USE ONLY

INDIA

UTTAR PRADESH POWER PROJECT

Loan and Project Summary

Borrower: India, acting by its President

Beneficiary: Uttar Pradesh State Electricity Board (UPSEB)

Amount: US$350 million equivalent

Terms: Twenty years, including five years grace,at the Bank's standard variable interest rate.

Onlending Teims: Government of India (GOI) to Government ofUttar Pradesh (COUP): As part of Centralassistance to Uttar Pradesh for developmentprojects on terms and conditions applicable atthe time.

GOUP to UPSEB: US$350 million. Repaymentover 20 years, including 5 years' grace atCOUP's interest rate applicable at the time forits lending to UPSEB, but not less than thecurrent rate of 10.25% per annum.

GOI would bear the foreign exchange and interestrate risks.

Financing Plan: 3OUP/Cofinancing $242 millionUPSEB $162 millionIBRD $350 million

Total $754 million

Economic Rate of Return: 11%

Staff Appraisal Report: No. 7048-IN, dated May 23, 1988

Mbp: IBRD No. 19911

This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

MEMORANDUM AND RECOMMENDATION OF THE PRESIDENTOF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

TO THE EXECUTIVE DIRECTORSON A PROPOSED LOAN TO

INDIAFOR THE UTTAR PRADESH POWER PROJECT

1. The following memorandum and recommendation on a proposed loan to Indiafor US$350 million equivalent is submitted for approval. The proposed loan wouldbe at the standard IBRD variable interest rate, and be repayable over 20 years,including a five-year grace period. The loan would help finance a projectdesigned to alleviate power shortages, rehabilitate thermal generating facilities,reduce energy losses, and improve operational efficiency and financial viabilityin the power system of Uttar Pradesh, a State in northern India.

2. Background. The power sector plays a key role in meeting the energy needsof the Indian economy. Through power generation, the sector contributes tooverall energy supply, and through its transmission and distribution network, itprovides widely dispersed industrial and agricultural consumers with access toenergy. As a result of the rapid growth of power demand, which grew at about 8% ayear during the past two decades, and the widely dispersed locations of powerconsumers, power supplies have continuously fallen short of demand. Nationwide,the power deficit is estimated to average about 1OZ. In India's Northern Region,the deficit may be as high as 30%. These shortages result in severe disruptionsof industrial production and agricultural output. Power consumers, who can affortit, often resort to investments in costly alternative sources of power.

3. The central and state governmentL recognize the high cost of these powershortages to the economy. They have attempted to eliminate these shortagesthrough a massive investment program in power generating capacity. More than 20Zof total public investment resources are now allocated to the power sector. Thebulk, about two-thirds, of these resources have been traditionally allocated tothe expansion of power generating capacity. The remaining third, has been usedfor investments in transmission and distribution, and the rehabilitation of powerplants. Delays in the implementation of new projects, underinvestment intransmission and distribution as well as underutilization of existing powerplants, have been responsible for the slow progress in closing the power gap.Budgetary constraints limit the feasibility of increasing the allocation ofinvestment resources for the power sector. The government is therefore pressingfor improvements in the operational efficiency and financial performance of StateElectricity Boards (SEBs), which account for more than 70% of India's powergeneration.

4. Uttar Pradesh is one of India's largest and most populated states. It haslarge coal reserves and a substantial hydroelectric potential. They have allowedUttar Pradesh to build large coal-fired thermal power plants in the south-easternpart and hydroelectric power plants in the north-western part of the state.However, much of the demand for power is concentrated in the south-western part ofthe state, and like most other states in India, Uttar Pradesh failed to develop atransmission and distribution system commensurate with the expansion of generating

-2-

capacities and power demand. As a result, the transmission system is overloaded,and Uttar Pradesh has one of the highest system losses in India. In addition,many of the power plants in Uttar Pradesh are operated inefficiently. This is dueto several factors: in part, it is the result of a gradual worsening of thefinancial situation of the Uttar Pradesh Stata Electricity Board (UPSEB), whichled to inadequate maintenance, and in particular shortages of spare parts; inpart, it is the result of deficiencies in the design and manufacturing of thepower plants, and the poor quality of coal thermal power plants have to use.

5. Rationale for Bank Involvement. A theme common to many of the issuesconstraining the development of India's power sector is the poor performance ofthe SEBs which remain the weak link in India's power system. Bank involvement inthe power sector in India has therefore been evolving towards a more directasscoiation with individual SEBs where state-specific programs can be designed toaddress areas of deficiency and where there is a commitment, at both the State andinstitutional level, to improve operational efficiency and financial performanceof these utilities.

6. The proposed project would be the first direct Bank operation with UPSEB,a large, expanding, but institutionally and financially weak, electric utility inan economically important State of India. UPSEB has a history of low operatingefficiency, poor quality of service, construction delays and cost overruns whichtogether have resulted in poor financial performance and a precarious financialposition. During project preparation, a comprehensive diagnosis of theorganization and operations of UPSEB was undertaken and agreement reached on adetailed Action Plan, regarding the measures needed to improve the operationalefficiency, reliability of supply and financial performance. The proposedproject, therefore, represents the first attempt by the Bank to addresscomprehensively -- through an Action Plen -- the several operational, managerialand financial constraints to improving the operational performance of an importantState Electricity Board, and to help lay the basis for establishing a strong,autonomous and commercially oriented electric utility.

7. Project Objectives. The proposed project is designed to: (a) alleviateacute power shortages in Uttar Pradesh and the Northern Region; (b) enhance theperformance and efficiency of existing thermal power station and high voltagetransmission system; (c) introduce in the power utilities of the country a newtechnology in power generation with the installation of fluidized bed boilers; (d)promote the development of economic hydro resources and supplement coal resourcesused for power generation; and (e) effect institutional, operational, andfinancial improvements in UPSEB by implementing a comprehensive Action Plan.

8. Project Description. The proposed project comprises: (a) construction ofa 330 MW hydropower station near Srinagar on the Alknanda River, a tributary ofthe River Ganga. The scheme includes a 70 m high and 200 m long concrete gravitydam, intake structures, a sedimentation basin, about five km long channel, anoutdoor power house wit.. Ax 55 NW generating units and associated infrastructureand auxiliaries; (b) resettlement, rehabilitation and compensatory afforestationmeasures associated with (a); (c) installation of two fluidized bed boilers at the

-3-

Harduaganj thermal power station and modernization of the coal and ash handlingsystems; (d) installation of an additional coal handling system at the Obrathermal power station and the acquisition of wagons for coal transport from thecoal mine; (e) construction of about 430 kms of high voltage transmission linestogether with additional transformer capacity and associated te'-ommunicationfacilities; (f) installation of around 2,000 energy meters; and (g) consultingservices and training for execution of the project and improvement of theorganisation and performance of the utility, in the context of the implementationof the Action Plan. The Action Plan comprises a number of specific actions(organizational improvement, planning, maintenance, training, billing, etc.) witha specific timetable, aimed at improving operational efficiency, strengtheningproject management, and bringing about the financial recovery of UPSEB.

9. The total financing requirements for the project are estimated atUS$754 million equivalent, including interest during construction, with a foreignexchange component of US$331 million (43.9%). A breakdown of costs, the financingplan, and retroactive financing arrangements are shown in Schedule A. Amounts andmethods of procurement and disbursement, and the disbursement schedule are shownin Schedule B. Proposals for cofinancing of some of the project componentsthrough either bilateral assistance or commercial agencies have been submitted toGOI and UPSEB and are under consideration. A timetable of key project processingevents and the status of the Bank Group operations in India are given in SchedulesC and D, respectively. A map (IBRD No. 19911) highlighting the project isattached. The Staff A-praisal Report, No. 7048-IN, daced May 23, 1988, is beingdistributed separately.

10. International Waterways Aspects. The Government of Bangladesh, as ariparian state, was informed on December 1, 1987, of the Bank's intention toassist India in implementing the Srinagar hydro scheme, a component of theproposed project. It was also advised of its design (exclusively for powergeneration without any diversion of water), its operation (run-of-the-river withdaily regulation) and its location (some 1,500 km from the border withBangladesh). While raising some general concerns regarding water sharing of theGanga River flow, the Government of Bangladesh has not expressed any substantiveobjection to the proposed project following the Bank's notification. Bank staffhave determined that for the reasons stated above, the project will have noharmful effect on the quantity of water flow into Bangladesh.

11. Environmental Aspects and Resettlement. The environmental impact and theresettlement of population dislocated by the proposed project, essentially limitedto the Srinigar hydro-scheme component, are relatively small due to the small sizeof the areas to be either submerged or required for the construction work, and thesparsity of the population in the valley -- 59 families will need to be resettled.UPSEB has already started to undertake a compensatory afforestation plan.Regarding resettlement, UPSEB has provided to the Bank a satisfactory plan, whichincludes proposals for (a) adequate assistance and/or cash compensation forrelocation of those ousted in appropriate accommodation, and (b) for training andassistance in small businesses, industries or trade which either already exist atSrinagar or are likely to be developed in the context of the implementation of the

-4-

project. The Bank will regularly review progress made in implementing theresettlement plan which should be complezed by December 31, 1992.

12. Financial Aspects. The impact of the Action Plan is expected tosignificantly strengthen UPSEB's financial position in the following areas:first, its increased capacity to generate funds will be reflected in: (a) agrowing percentage of its investment being financed with internally generatedfunds; and (b) UPSEB's improved capacity to service its debt; second, the rate ofreturn will move from a negative to a positive value as a result of a moreefficient operation of its physical plant; third, UPSEB's liquidity position willimprove because of better management of its working capital; fourth,rationalization of the utility's investment program will avoid spreading financialresouces too thinly and contribute to a reduction in project comp'.etion time; and,finally, UPSEB's capital structure will improve. Achieving this financialrecovery program implies regular annual tariff increases starting in 1990/91.This operation, which addresses the most critical operational and institutionaldeficiencies of the Board, is the first step in a longer term institutionalrecovery process. The longer term consolidation of UPSEB's financial positionwill require addressing financial policy issues and practices which are at leastpartially outside its control, and are part of the Bank's ongoing sectoraldialogue with GOI.

13. Agreed Actions. GOUP agreed to: (a) undertake specific actions under theAction Plan regarding UPSEB's organization and technical and financial performancethat are under its responsibility; (b) eliminate, or cause to eliminate, beforeMarch 31, 1989, the remaining arrears due to UPSEB, as of August 31, 1987, by GOUPand its agencies for electricity consumption, and prepare, before December 31,1988, a program to ensure that, from April 1, 1989 onwards, GOUP and its agenciespay their electricity bills within 60 days; (c) implement the resettlement planneeded as a result of the development of the Srinagar hydro scheme; and (d) onlendto UPSEB the proceeds of the proposed loan at the standard interest rate itcharges for 'Loans made to its corporations and agencies, but not less than thecurrent rate of 10.25' p.a. with a repayment period of 20 years, including a graceperiod of five years.

14. In addition, GOUP agreed to cause UPSEB to: (a) implement the Action Planagreed with the Bank which includes the specific measures to be implementedaccording to a detailed timetable. In order to ensure that the objectives of theAction Plan are being achieved, the Bank will undertake, by December 1989, a fullreview of the progress attained by UPSEB in implementing it. Lack of progress onthe substantive provisions of the Action Plan would be viewed by the Bank as aserious matter which could affect further project implementation; (b) take allmeasures necessary to ensure that in each financial year, commencing 1990/91,UPSEB earns a rate of return on historical assets of at least 3X after interestpayment; this is estimated to be equivalent to about five to six percent onrevalued assets; (c) furnish to the Bank annual reports, beginning September 30,1989, covering the monitoring and evaluation of the resettlement and compensatoryafforestation plan related to the Srinagar hydro scheme, and no later thanone-year before the expected completion of scheme, details of the arrangements for

-5-

inspecting and maintaining the dam and the associated structures to ensure theircontinued safety; and (d) furnish to the Bank: (i) UPSEB's audited accountstogether with the Auditor's report within 12 months of the end of the financialyear for financial years 1987/88 and 1988/89, and within nine months for thefollowing financial years; (ii) quarterly progress reports, beginningSeptember 30, 1988, indicating the progress attained in implementing the measuresincluded in the Action Plan; and (iii) annual reports, beginning December 31,1988, on the financial performance for the ensuing financial year, specifying theactions to be taken to meet the financial targets and updated financialprojections for the following five years.

15. Benefits. Economic benefits under the proposed project are expected from:(a) increases in the quantum of power supplied to consumers; (b) improvements inthe quality of power supply; (c) reduced system losses; and (d) greater efficiencyin the use of assets in the public power supply system. The least cost powerdevelopment program for the Northern Region, of which the proposed project is anintegral part, is calculated conservatively to have a quantifiable economic rateof return of at least llX.

16. Risks. No unusual risks are foreseen in the execution of the project.Technical risks would be minimized by the use of consultants where UPSEB hasinadequate experience. In regard to the institutional strengthening of the UPSEBthat is being sought under this project, there is some risk that a change in thecurrent management of UPSEB could slow down progress. While this risk exists, theopportunity of regular reviews with UPSEB on the progress being made inimplementing the Action Plan will provide the Bank with an opportunity to monitorthe leadership being provided by UPSEB's management, and recommend changes asappropriate.

17. Recommendation. I am satisfied that the proposed loan would comply withthe Articles of Agreement of the Bank and recommend that the Executive Directorsapprove the proposed loan.

Barber B. ConablePresident

Attachments

Washington, D.C.May 25, 1988

-6-Schedule A

INDIA

UTTAR PRADESH POWER PROJECT

Estimated Cost 1/

Item Local Forei n Total(US$ Millions)

Srinagar Hydro Power Station- Land, environment and resettlement 5.2 - 5.2- Civil Works 85.9 37.6 123.5- Electro-mechanical equipment 33.6 73.0 106.6- Erection 20.6 2.2 22.8

Sub total 145.3 112.8 258.1

Harduaganj Thermal Power Station- Boiler 5.9 13.8 19.7- Coal, fuel oil and ash handling 4.2 7.4 11.6- Civil Works and Chimney 0.5 0.3 0.8- Electrical auxiliaries 2.5 2.6 5.1

Sub total 13.1 24.1 37.2

Obra Thermal Power Station- Coal handling system 10.7 16.9 27.6- Wagons 7.4 4.9 12.3- Associated civil and auxiliary works 0.7 - 0.7

Sub total 18.8 21.8 40.6

Transmission and Telecommunication Systems 40.3 41.2 81.5Meters 0.6 2.3 2.9Training and Consultation Services 0.8 1.3 2.1Engineering and Administration 37.3 - 37.3

Total Base Cost 256.2 203.5 462.7

Physical Contingencies 26.3 14.3 40.6Price Contingencies 52.2 39.6 91.8

Total Project Cost 334.7 257.4 592.1

Interest During Construction 89.0 73.3 162.3

Total Financing Required 423.7 330.7 754.4

1/ Including about US$44.5 million in taxes and duties.

Financing Plan

(US$ millions)Source Local Foreign Total

IBRD 92.6 257.4 350.0QOUP/Cofinancing 168.6 73.3 241.9UPSEB 162.5 - 162.5

423.7 330.7 754.4= =b

-7 -

NDUIA SCNEDULE-8

UTTAR PRAOESI P0111 PROJECT....................PROCUOEIEHT AH"G>iS (US S millions).... ............. ... ................. ........... ,,,^.............................

PROCIREIIT iEtHWDPROJECT CapaETS *----------------------------------..--

ICe LC8 OTHER N.A. TOTAL.................. ......... ......................... ................. ................. I..............................................

Contract lank Contrwts Contract Ban* Contracts Contract SankValue Finance Value Value Finance Value vatue Finane

A. SRINAGIU NDRO P0RE STATION:Lend, Resettlement,Preperathn 7.5 7.5Civit harks-D,Taumnel,Sedimant,1asin 137.0 103.0 137.0 103.0-Power Chwa t 23.0 17.0 23.0lorebey,Power House.Suitchyard 36.9 28.0 36.9 28.0-Tail Rce 6.4 6.4

-spilltsyl Gates 15.4 9.3 15.4 9.3-Penstocks 4.3 2.6 4.3 2.6-Turbo-senerators 69.8 59.5 69.8 59.5-AuxilIaries 3.7 3.7-in Tssaorm r 4.0 2.4 4.0 2.4*Cables 0.5 0.5-SwitChyard 3.5 2.1 3.5 2.1

S. HARDUAGAMBoi ers 23.3 16.0 23.3 16.0Cool Handling 8.5 6.8 8.5 6.8Ash Handling 3.0 1.8 3.0 1.8Fuet Oll ndl4ng 0.4 0.3 0.4 0.3Etectricat Uorks 5.4 4.1 5.4 4.1Fire Fighting Syate 0.8 0.8Chiay 0.8 0.8

C. DWRACoal Handling 30.3 21.5 30.3 21.5Vag"n 14.1 9.6 14.1 9.6Misc. Civil Works 0.9 0.9

0. TR3AH#IISIO SYSTEM:Tranunesion Line 57.1 44.3 8.5 65.6 44.3SubStatiem 21.1 15.7 4.2 25.3 15.7Telecinmication 3.1 1.9 3.1 1.9

E. metere 3.2 2.5 3.2 2.5

E. SERVICES:consultoy 1.6 1.0 1.6 1.0Trainirn 1.1 0.6 1.1 0.6Egineering & Adinfstration 48.6 48.6

TOTAL 463.4 348.4 25.8 2.7 1.6 56.1 548.0 350.0

DISBURSEMEUT ARRAIWIEUT---------------........ w A-unt of the Loan Pacantage of

Attocatad(tVresed Expediture toCateory in Dollar Eqaivalent) be Fin, ced.... ................ ................. ......... ................

(1) Civil -rk 14S.000,000 75 X of civfl worksexpwditures

(2) Efaipunt & Mateias 171.000,000 100 S of foreignnd aw ociated erection xpenditures and 100 S

wwks of Local e pnditures(ox-fatory cost) and75 2 eection cost

(3) Consultants' services 1,600,000 100 1and training

(4) UnIttloated 32,400,000

tOTAL

STIMATED DISl_SST (tUS S Miltions).... .... ....................... .............

B"FY FY 89 fY90 FY 91 FY 92 F 93 FY 94 FY 95 FY 96,,, ,, , ..... ...... ..... ...... ..... -----. ... .. _ .. ... .. ... .. .... ----

Ab tl 26.5 10.0 29.S 48.6 95.0 67.2 30.0 23.2

Cumulative Disburement 26.5 36.5 66.0 134.6 229.6 296.8 326.8 350.0

-8-Schedule C

INDIA

UTTAR PRADESH POWER PROJECT

Timetable of Key Project Processing Events

(a) Time taken to prepare: One and half years

(b) Prepared by: Uttar Pradesh State Electricity BoardUttar Pradesh Department of IrrigationCentral Electricity Authoricy

(c) First Bank mission: January 1987

(d) Appraisal mission departure: June 1987

(e) Negotiations: April 1988

(f) Planned date of effectiveness: September 1, 1988

(g) Last relevant PCRs and PPARs: No. 6307, dated June 26, 1986(India: First and Second Electrifica-

tion -- Credits 0572/0911)

-9 Schedule 0Page 1 of 4

THE STATUS OF BANK GROUP OPERATIONS IN INDIA

A. STATEMENT OF aANK LOANS AND IDA CREDITS(As of March 31, 1988)

US$ millionLoan or Fiscal (Yet of Cancellations)Credit Year ofNo. Approval Purpose Bank IDA 1/ Undisbursed 2/

61 Loans/ 3,134.2 -124 Credits fully disbursed - 7,800.5

842-IN 1979 Bombay Water Supply II - 196.0 10.281648-IN 1979 Ramagundam Thermal Power 50.0 - 1.86963-IN 1980 Inland Fisheries - 20.0 3.68981-IN 1980 Population II - 46.0 4.931003-IN 1980 Tamil Nadu Nutrition - 32.0 4.341011-IN 1980 Gujarat Irrigation II - 175.0 34.501012-IN 1980 Cashewnut - 22.0 7.151027-IN 1980 Singrauli Thermal II - 300.0 19.151034-IN 1980 Karnataka Sericulture - 54.0 5.711046-IN 1980 Rajasthan Water Supply S Sewerage - 80.0 22.841053-IN 1980 Farakka Thermal Power - 225.0 10.821887-IN 1980 Farakka Thermal Power 25.0 - 25.001897-IN 1981 Kandi Watershed and

Area Development 30.0 - 6.801072-IN 1981 Bihar Rural Roads - 35.0 4.331078-IN 1981 Mahanadi Barrages - 83.0 13.341082-IN 1981 Madras Urban Development II - 42.0 4.541108-IN 1981 M.P. Medium Irrigation - 140.0 31.211116-IN 1981 Karnataka Tank Irrigation - 54.0 12.261125-IN 1931 Hazira Fertilizer Project - 399.1 24.561138-IN 1981 M.P. Agricultural Ext. II - 37.0 11.311146-IN 1981 National Cooperative

Development Corp. II - 125.0 8.401172-IN 1982 Korba The:-'al Power Project II - 400.0 109.171177-IN 1982 Madhya Pradesh Major Irrigation - 220.0 109.421178-IN 1982 West Bengal Social Forestry - 29.0 14.661185-IN 1982 Kanpur Urban Development - 25.0 4.552076-IN 1982 Ranagundam Thermal Power II 300.0 - 115.761219-IN 1982 Andhra Pradesh Agricultural Ext. - 6.0 2.592123-IN 1982 Refineries Rationalization 200.0 - 8.362165-IN 1982 Rural Electrification III 304.5 - 32.731269-IN 1982 Kallada Irrigation - 60.0 3.742186-IN 1982 Ka.lada Irrigation 20.3 - 15.471280-IN 1983 Gujarat Water Supply - 72.0 58.121286-IN 1983 Jammu/Kashmir and

Haryana Social Forestry - 33.0 17.901288-IN 1983 Chambal Madhya Pradesh

Irrigation II - 31.0 10.031289-IN 1983 Subernarekha Irrigation - 127.0 49.862205-IN 1983 Krishna-Godavari Exploration 165.5 - 30.181299-IN 1983 Railways Modernization &

Maintenance II - 200.0 35.852210-IN 1983 Railways Modernization &

Maintenance II 200.0 - 197.04

Schedule D

- 10 - Page 2 of 4

USS millionLoan or Fiscal (Net of Cancellations)Credit Year ofNo. Approval Purpose Bsank IDA 1/ Undisbursed 2/

2241-IN 1983 South Bassein Cas Development 139.3 - 16.461319-IN 1983 Haryana Irrigation II - 150.0 65.901332-IN 1983 U.P. Public Tubevells II - 101.0 56.021356-IN 1983 Upper Indravati Hydro Power - 170.0 120.382278-IN 1983 Upper 'ndravati Hydro Power 156.4 - 156.011369-IN 1983 Calcutta Urban Development III - 147.0 122.102283-IN 1983 Central Power Transmission 250.7 - 230.912295-IN 1983 Himalayan Watershed Management 46.2 - 39.031383-IN 1983 Maharashtra Water Utilization - 32.0 18.822308-IN 1983 Maharashtra Water Utilization 22.7 - 22.642329-IN 1983 Madhya Pradesh Urban 24.1 - 13.891397-IN 1984 Orissa Irrigation II - 105.0 54.351424-IN 1984 Rainfed Areas Watershed Dev. - 31.0 37.591426-IN 1984 Population III - 70.0 59.401432-IN 1984 Karnataka Social Forestry - 27.0 18.222387-IN 1984 Nhava Sheva Port 250.0 - 129.622393-IN 1984 Dudhichua Coal 151.0 - 107.342403-IN 1984 Cambay Basin Petroleum 242.5 - 176.682415-IN 1984 Madhya Pradesh Fertilizer 203.6 - 77.631454-IN 1984 Tamil Nadu Water Supply - 36.5 34.96SF-12-IN 1984 Tamil Nadu Water Supply - 36.5 48.971468-IN 1984 Periyar Vaigai II Irrigation - 17.5 2.46SF-16-IN 1984 Periyar Vaigai II Irrigation - 17.5 18.471483-IN 1984 Upper Ganga Irrigation - 125.0 136.871496-IN 1984 Cujarat Medium Irrigation - 172.0 144.882416-IN 1984 Indira Sarovar Hydroelectric 157.4 - 152.58SF-20-IN 1984 Indira Sarovar Hydroelectric - 129.8 168.542417-IN 1984 Railways Electrification 280.7 - 207.502442-IN 1984 Farakka II Thermal Power 300.8 - 270.092452-IN 1984 Fourth Trombay Thermal Power 135.4 - 71.081502-IN 1984 National Cooperative

Development Corporation III - 220.0 231.701514-IN 1985 Kerala Social Forestry - 31.8 29.771523-IN 1985 National Agric. Extension I - 39.1 47.691544-IN 1985 Bombay Urban Development - 138.0 156.612497-IN 1985 Narmada (Gujarat) Dam and Power 200.0 - 200.001552-IN 1985 Narmada (Gujarat) Dam and Power - 100.0 110.571553-IN 1985 Narmada (Gujarat) Canal - 150.0 187.561569-IN 1985 Second National Agricultural Ext. - 49.0 51.881611-IN 1985 National Social Forestry - 165.0 183.581613-IN 1985 Indira Sarovar Hydroelectric - 13.2 17.202498-IN 1985 Jharia Coking Coal 248.0 - 215.452505-IN 1985 Maharashtra Petrochemical 300.0 - 184.822534-IN 1985 Second National Highway 200.0 - 176.382544-IN 1985 Chandrapur Thermal Power 300.0 - 254.752555-IN 1985 Rihane Power Transmission 250.0 - 164.642582-IN 1985 Kerai l i. 176.0 - 174.191619-IN 1986 West Bengal Minor Irrigation - 99.0 139.971621-IN 1986 Maharashtra Composite Irrigation - 160.0 219.191622-IN 1986 Kerala Water Supply and Sanitation - 41.0 52.531623-IN 1986 West Bengal Population - 51.0 64.281631-IN 1986 National Agricultural Research II - 72.1 86.092629-IN 1986 Industrial Export Dev. Finance 90.0 - 78.44

Schedule D- 11 - Page 3 of 4

US$ millionLoan or Fiscal (Net 'tf Cancellations"Credit Year ofNo. A Purpose Bank IDA 1/ Undisbursed 2/

2630-IN 1986 ICICI-Indus. Exp. Dev. Firance 160.0 - 142.051643-IN 1986 Gujarat Urban - 62.0 75.722653-IN 1986 NABARD I 375.0 - 116.652660-IN 1986 Cement Industry 165.0 - 151.782661-IN 1986 ICICI - Cement Industry 35.0 - 30.571665-IN 1986 Andhra Pradesh II Irrigation - 140.0 176.882662-IN 1986 Andhra Pradesh II Irrigation 131.0 - 131.002674-IN 1986 Combined Cycle Power 485.0 - 429.072729-IN 1986 Cooperative Fertilizer 150.2 - 48.522730-IN 1986 Cooperative Fertilizer 152.0 - 89.211737-IN 1987 Bihar Tubewells - 68.0 76.432769-IN 1987 Bombay Water Supply &

Sewerage III 40.0 - 40.001750-IN 1987 Bombay Water Supply &

Sewerage III - 145.0 136.321754-IN 1987 National Agric. Extension III 85.0 98.291757-IN 1987 Gujarat Rural Roads - 119.6 133.871770-IN 1987 National Water Management - 114.0 120.782785-IN 1987 Oil India Petroleum 140.0 - 131.862796-IN 1987 Coal Mining & Quality Improvement 340.0 - 285.542813-IN 1987 Telecommunications IX 345.0 - 345.002797-IN 1987 Uttar Pradesh Urban Development 20.0 - 20.001780-IN 1987 Uttar Pradesh Urban Development - 130.0 141.062827-IN 1987 Karnataka Power 330.0 - 330.002844-IN 1987 National Capital Power 485.0 - 485.002845-IN 1987 Talcher Thermal 375.0 - 375.002846-IU 1987 Madras Water Supply 53.0 - 53.001822-IN 1987 Madras Water Supply - 16.0 17.342886-IN 1988 Drought Assistance 150.0 - 94.721852-IN 1988 Drought Assistance - 200.0 37.532893-IN 1988 National Dairy II* 200.0 - 200.001859-IN 1988 National Dairy II* - 160.0 168.14

Total 12,685.5 15,005.2of which has been repaid 1,855.9 377.1

Total now outstanding 10,829.6 14,628.1Amount Sold 133.8of which has been repaid 133.8 - -

Total now held by Bank and IDA 3/ 10,829.6 14,628.1

Total undisbursed (excluding *) 6,522.31 4,350.01

1/ IDA Credit amounts for SDR-denominated Credits are expressed in terms of theirUS dollar equisJlents, as established at the time of Credit negotiations and assubsequently presented to-the Board.

2/ Undisbursed amount. aor SDR-denominated IDA Credits are derived from cumulativedisbursements converted to their US dollar equivalents at the SDR/US dollar exchangerate in effect on March 31, 1988, while original principal is based on the exchangerate in effect at negotiations. This accounts for the fact that in some cases, theundisbursed balance as shown in US$ equivalent is higher than the original principal.

3/ Prior to exchange adjustment.

* Not yet effective.

SCHEDULE D- 12 - Page 4 of 4

B. STATEMENT OF IFC INVESTMENTS(As of March 31, 1988)

Fiscal Amount (JS$ million)Year Company Loan Equity Total

1959 Republic Forge Company Ltd. 1.5 - 1.51959 Kirloskar Oil Engines Ltd. 0.8 - 0.81960 Assam Sillimanite Ltd. 1.4 - 1.41961 K.S.B. Pumps Ltd. 0.2 - 0.21963-66 Precision Bearings India Ltd. 0.6 0.- 1.01964 Fort Closter Industries Ltd. 0.8 0.4 1.21964-75-79 Mahinira Ugine Steel Co. Ltd. 11.8 1.3 13.11964 Lakshmi Machine Works Ltd. 1.0 0.3 1.31967 Jayshree Chemicals Ltd. 1.1 0.1 1.21967 Indian Explosives Ltd. 8.6 2.9 11.51969-70 Zuari Agro-Chemicals Ltd. 15.2 3.8 19.01976-87 Escorts Limited 15.9 - 15.91978 Housing Development Finance Corp. 4.0 1.6 5.61980 Deepak Fertilizer and

Petrochemicals Corporation Ltd. 7.5 1.2 8.71981 Coromandel Fertilizers Limited 15.9 - 15.91981-86 Tata Iron and Steel Company Ltd. 52.4 - 52.41981 Mahindra, Mahindra Limited 15.0 - 15.01981 Nagarjuna Coated Tubes Ltd. 1.5 0.3 1.81981-86/87 Nagarjuna Signode Limited 2.3 0.3 2.61981 Nagarjuna Steels Limited 3.5 0.2 3.71982 Ashok Leyland Limited 28.0 - 28.01982 The Bombay Dyeing and

Manufacturing Co. Ltd. 18.8 - 18.81982 Bharat Forge Company Ltd. 15.9 - 15.91982 The Indian Rayon Corp. Ltd. 14.6 - 14.61984-86 The Gwalior Rayon Silk Manu-

facturing (Weaving) Co. Ltd. 16.0 - 16.01985 Bihar Sponge 16.7 0.7 17.41985 Bajaj Auto Ltd. 23.9 - 23.91985 Modi Cement 13.2 - 13.21985 India Lease Development Ltd. 5.0 0.3 5.31986 Larsen and Toubro Ltd. 21.8 - 21.81986 India Equipment Leasing Ltd. 2.5 0.4 2.91986 Bajaj Tempo Limited 30.5 - 30.51986 The Great Eastern Shipping

Company Ltd. 8.0 2.0 10.01987 Gujarat Narmada Valley Fertilizer 38.9 - 38.91987 Hero Honda Motors Ltd. 7.9 - 7.91987 Wimco Limited 4.7 - 4.71987 Titan Watches Limited 15.6 0.4 16.01987 Export-Import Bank of India 15.0 - 15.01987 Gujarat Fusion Glass Ltd. 7.5 1.7 9.21987 The Gujarat Rural Housing

Finance Corp. - 0.2 0.21987 Hindustan Motors Ltd. 40.5 - 40.5

TOTAL GROSS COMMITMENTS 506.0 18.5 524.5

Less: Cancellations, Terminations,Repayments and Sales 291.6 8.0 299.6

Now Held 214.4 10.5 224.9

Undisbursed 135.1 2.6 137.?

IBRD 199I

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