Document of

The World Bank

FOR OMCAL USE ONLY

( MICROFICHE COPY

Report No. P- 5787-IN Type: (PM)CHASSARD, / X81873 / ElOlOlJ SA2EG 11_tNo* P-5787-IN

MEMORANDUM AND RECOMMENDATION

OF THE

PRESIDENT OF THE

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

TO THE

EXECUTIVE DIRECTORS

ON A

PROPOSED LOAN

IN AN AMUNT EQUIVALENT TO US$350 MILLION

TO INDIA

FOR A4

SECOND MASETRA POWER PROJECT

JUNE 3, 1992

'This document has a resticed dibibdon anwy be uned by recpicut ol IS perfrmance of*didr off1ci'd

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CURRENCY EQUIVALENT(as of March, 1992)

Currency Unit - Rupees (IRs)RS 1.00 - Paise 100R 1,000,000 - US$39,216US$1.00 - Rs 25.50

MEASURES AND EQUTVALENTS

I Kilowatt hour (kVh) - 1,000 watt-hours1 Megawatt (MV) . 1,000 kilowatts (kW) 1 million vattsI Gigsvatt hour (GWh) - 1,000,000 kilowatt-hours

ABBREVI&TIONS AND ACRONYMS

GOI - Government of IndiaGOM - Government of MaharashtraJGF - Japan Grant FacilityICB - International Competitive BiddingLCB - Local Competitive BiddingLICB - Limited International BiddingLIMC - Long Run Marginal CostMBEB - Maharashtra State Electricity BoardOPAP - Operational and Financial Action PlanPPC - Power Finance CorporationSRB - State Electricity Board

FISCAL YEAR

April 1 - March 31

FOR OFMICL USE ONLY

INDIA

SECOND MAHARASHTRA POWER PROJECT

Loan and Proiect Summary

Borrowers India, acting by its President

Beneficiarys Maharashtra State Electricity Board (MSEB)

Amount: US$350 million

Terms: 20 years, including five years grace, at the Bank'sstandard variable interest rate

On-lending Terms: The Government of India (GOI) will make the proceedsof the loan available to the Government of Maharashtra(GOM) under the standard terms for central assistanceto the states. GOM will retain US$1 million for partof the technical assistance component, and onlendUS$349 million to MSEB, at an interest rate not lessthan the prevailing coupon rate for GOI long-datedsecurities, currently at 12.5Z per annum, with arepayment period of 20 years, including a grace periodof 5 years. GOI will bear the foreign exchange risk.

Financing Plan:Local Foreign Total-------------(US$ million)------------

IBRD 350 350Export Credits - 200 200GOM 305 - 305MSEB 244 125 369

549 675 1224- ==

Economic Rate of Return: In excess of 12?

Staff Appraisal Reports No. 10604-IN

Maps: IBRD 23691IBRD 23692

This document has a restricted distribution nd 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 M%ECUTIVE DIRECTORSON A PRCPOSED LOAN

TO INDIAFOR A SECOND MAHARASHTRA PO1WER PROJECT

1. I submit for your approval the following memorandum andrecommendation on a proposed loan to India for the equivalent of US$350million to help finance a Second Maharashtra Power Project. The loan would bemade at the Bank's standard variable interest rate, with a maturity of 20years, Including five years of grace. The proceeds of the loan would beonlent to the Government of Maharashtra (GOM) under the standard terms forcentral assistance to the states. GOM will retain US$l million and onlendUS$349 million to the Maharashtra State Electricity Board (MSEB) for 20 years,including five years of grace, with interest of not less than the prevailingcoupon rate for Government of India (GOI) long-dated securities, currently12.5X. GOI will bear the foreign exchange risk.

2. Sector Background. Over the past decade, electricity consumptionin India incre4sed at an average annual rate of about 9?, partly as a resultof low retail tariffs that have also largely contributed to the sector'spresent financial distress. Despite significant progress in system expansion,power shortages persist and, in FY92, were equivalent to about 9? of totalelectrical energy and 18? of peak capacity requirements. Power supply islikely to continue to constrain economic growth in India well into the nextcentury. Unless greater emphasis is placed in future on improving theefficiency of supply, consumption, and pricing of electricity, continued focuson supply capacity expansion will aggravate the critical power demand/supplysituation and is likely to be financially unsustainable. A major challengefor the Government of India (GOI) in the power sector in the 1990s will thusbe to attain a better balance in sector development between supply expansionand efficiency improvements.

3. Meeting this challenge will first require bold actions oninstitutional arrangements as well as bulk and retail power tariffs, billingand collection, in a country where responsibilities for managing the sectorare shared between the central government and the states, and where, as aconsequence, electricity has become a highly charged political issue. Stategovernments have effectively assumed control of most major decisions of thestate utilities, including those on investments, tariffs, borrowings, salaryand personnel policies. The commercialization of the state electricity boards(SEBs), involving the establishment of a transparent regulatory framework toprovide operational and financial autonomy with accountability forperformance, 5s a prerequisite to improving sector efficiency. The proposedproject addresses these efficiency issues in the state of Maharashtra.

4. Massive investments in additional capacity will also be required ata time when budgetary constraints are likely to reduce central governmentfunding of the sector's investment program. Faced with a growing power gapand diminishing public resources, GOI has opened the power sector to privateinvestment and, through amendments to the Electricity (Supply) Act, 1948,lifted many of the regulstory disincentives to private investment in thesector. Maharashtra has already identified two major power generationprojects for implementation by the private sector and is developing its ownprivate power policy and regulatory framework, within 60I's overall

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guidelinas. A technical assistance program for private power development inMaharashtra, pas y funded by the Japan Grant Facility (JGF), is beingimplemented as p of the proposed project and will help Maharashtra contractwith private deve. pers for the two above-mentioned projects.

5. Lessons from Previous Bank Operations. The Bank has financed theChandrapur Thermal Power Project (Ln. 2544-IN) and the Maharashtra PowerProject (Ln. 3096-IN) to help MSEB expand its generation, transmission anddistribution facilities, renovate and modernize existing power plants, andenhance its capabilities in many areas of utility operation, management andproject implementation. Both projects have encountered difficulties in theearly stages of their implementation due, to a large extent, to the slow paceof procurement. More recently however, MSEB's extensive use of model biddingdocuments approved by the Bank has improved the situation considerably. Fundsavailable under the first project are practically fully comnitted and most ofthe outstanding balance is expected to be disbursed in FY93. Bidding for thepart of the Mahsrashtra Power Project executed by MSEB is almost complete andfunds will be fully committed by end-1992; savings of about US$46 million havealready been identified and GOI has requested the Bank to cancel an equivalentamount from the loan. Similar progress has been achieved on the part of theproject implemented by GOM. Compliance with loan covenants has generally beensatisfactory. The lessons learned from these projects have had an importantbearing on the preparation of the proposed project, particularly as regardsthe need to improve MSEB's procurement procedures and increase its self-financing capabilities.

6. Rationale for Bank Involvement. The project helps implement theBank's lending strategy for the power sector, which supports development ofprivate utilities as well as central sector and state utilities thatdemonstrate a firm commitment to improve their operational performance andfinances. The Bank's continued association with MSEB and GOM will ensure thatthe long-term process of financial, operational and managerial improvementsinitiated by HSEB under previous operations, and Maharashtra's stated policyof focussing on efficiency improvements as a priority area in MSEB's futuredevelopment are fully implemented. Proposed generation and ruralelectrification investments have been cut in MSEB's investment plan andseveral major programs and projects have been initiated to reduce systemlosses and improve operational efficiency. They include: (a) distributionreinforcement and expansion in the main urban centers; (b) distribution masterplans for the 32 districts in Maharashtra, leading into an accelerateddistribution reinforcement program for selected areas; (c) major increases inresidential and commercial electricity tariff rates and a 40Z reduction inSEBe's target for the annual number of agricultural pump connections, to

contain the growth in demand and reduce the financial burden of supply tothese consumer groups; and (d) rehabilitation and renovation of MSEB'sexisting generating stations (also involving environmental improvements).Significant adjustments in MSEB's electricity tariff structure have beenrecently introduced and will be pursued during project implementation.

7. Proiect Obiectives. The main objectives of the project are to: (a)support operational efficiency improvements; (b) improve internal and externalresource mobilization through the introduction of internal cash generationtargets for NSEB and external cofinancing; and (c) promote institutionalreforms, including the review of the long-tenm institutional development ofMaharashtra's power sector and direct support to GOM for the finalization oftwo major private power projects.

- 3 -

8. Proiect Description. The proposed project comprisess (a) theconstruction of the last stage of Chandrapur thermal power station by theaddition of a 500-MW coal-fired unit; (b) the construction of a + 500-kV,1,500-MW HVDC line from Chandrapur to Padghe, near Bombay (about 735 km), andthe related termival stations; (c) the implementation of the accelerateddistribution reinforcement program aimed at reducing losses in selected areas;and (d) consulting services in the following four areas: (i) load research andpreparation of electricity demand management measures; (ii) development ofMSEB's environmental management capabilities at the corporate level; (iii)preparation of private power projects in Maharashtra ; and (iv) institutionalreview of the power sector in Maharashtra.

9. Prolect Implementation. The proposed project would be carried outby MSEB, with the assistance of qualified consultants. The project cost isestimated at US$957 million equivalent, with a foreign exchange component ofUS$545 million equivalent (57Z) and taxes and duties estimated at about US$72million equivalent. The total financing required, including interest duringconstruction, is US$1,224 million equivalent, of which the Bank would financeUS$350.0 million equivalent C4Z of the foreign exchange requirements and 27Zof the total). A breakdown of costs and the financing plan is shown inSchedule A. Amounts and methods of procurement and of disbursements, and thedisbursement schedule, are shown in Schedule B. A timetable of key projectprocessing events and the status of Bank Group operations in India are givenin Schedules C and D, respectively. Two maps are also attached. The StaffAppraisal Report No. 10604-IN, dated June 3, 1992, is being distributedseparately.

10. Environmental and Resettlement Aspects. The environmental impactof the proposed project is in line with standards acceptable to the Bank. Asu1mary of the environmental assessment carried out during project preparationwas distributed to the Executive Directors on February 28, 1992. Ground levelair quality, S0O and NO, emissions and thermal discharge of Chandrapur, withall seven units in operation and burning the worst quality of coal, wouldremain in compliance with GOI, GOM and Bank guidelines. Liquid effluents willbe treated and neutralized in a waste water treatment plant and will berecycled for ash disposal purposes. Transmission and distribution facilitieswill be designed and constructed in accordance with practices that will ensureminimum disturbance to the environment. The route for the 736-km longtransmission line has been selected so that only 7.8 km infringes on forestland. MSEB will bear the cost of compensatory afforestation, for which landhas already been identified. The proposed project also will entail acomponent to strengthen MSEB's environmental management capabilities.

11. While the proposed extension of the Chandrapur power station, theBVDC link and the accelerated distribution reinforcement program do notinvolve any displacement of population, the construction of units 5 and 6 ledto the displacement of about 800 families, some of which remain to be fullyresettled and rehabilitated. GOM has agreed to complete their resettlementand rehabilitation within a period of about 18 months.

12. Agreed Actions. During negotiations, GOM and MSEB agreed thats (a)MSEB's net internal cash generation will be no less than 202 of averagecapital expenditures in FY93 and FY94, and 252 from FY95 onvwards; (b) MSEB'srate of return will be no less than 4.5? from FY93 onwards; (c) MSEB willfurnish to the Bank annual revisions to its five-year revolving capitalinvestment program and the associated financing plan, not later than December

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31 of each year; td) customer receivables and commercial payables will remainwithin set limits; (e) MSEB will implement various environmental mitigatorymeasures at Chandrapur; (f) GOM will discuss with the Bank the findiAgs andrecommendatioas of a high-level commission established to examine theinstitutional development of Maharashtra's power sector, not later thanDecember 31, 1993; and (g) GOM and MSEB will carry ut jointly with the Banka mid-term review, during the third year of the project, to assess overallprogress in the physical exicution of the project and MSEB's new efficiency-oriented investment plan, and the implementation of the programs forelectricity demand management, tariff reform and private sector powerdevelopment in Maharashtra. Finalization of the financial arrangements forthe acquisition and installation of the HYDC terminals and fulfilment of theconditions for final forest clearance are conditions of loan effectiveness.

13. Project Benefits. The main benefits of the project ares (a) anincrease in power supply in Maharashtra; (b) further improvements in MSEB'soperational efficiency; (c) strengthening of its finances and of itsmanagerial autonomy; (d) impro,emerts in the quality of service inMaharashtra; (e) more economic use of generating capacity through betterpricing policies, demand management and loss reduction measures; (f) reducedreliance on the central government for financing investment requirements byincreasing MSEB's self-financing capabilities and improving external resourcemobilization as well as facilitating private sector investments; and (g)strengthening of MSEB's environmental impact management capability.

14. Risks. The project does not pose any particular technical risks,in view of the proven designs and engagement of well-qualified consultants toassist MSEB in project implementation. The main project risks relate to: (a)the availability of supplier financing for the HVDC link, on reasonable terms;(b) a slow procurement process; and (c) the pace at which tariff and otherinstitutional reforms will be implemented. These risks will be minimized by:(a) assisting MSEB in preparing the tender documents for the HVDC link to helpobtain the most attractive financing offers; (b) having finalized duringproject preparation a model bid document, contract packages and the associatedprocurement plan; (c) having the first tariff adjustment, involving majorimprovements in the structure of tariffs as well as a significant increase intheir level, implemented before Board presentation; (d) establishing realistictargets for MSEB's financial performance and the implementation of furthertariff adjustments, demand management measures and institutional reforms; and(e) providing tecbnical assistance to help MSEB and GOM implement thesemeasures.

15. Recommendation. I am satisfied that the proposed loan would complywith the Articles of Agreement of the Bank and I recommend that the ExecutiveDirectors approve the proposed loan.

Lewis T. PrestonPresident

AttachmentsWashington, D.C.June 3, 1992

Schedule A

INDIA

SECOND MAEARASETRA POVER PROJECT

Estimated Cost and Financins Plan a/(US$ million)

Local Foreign Total

Estimated Proiject Cost

A. Chandrapur Unit 7 (500 MW) 172 236 408B. HVDC Transmission Link 133 181 314C. Accelerated Distribution Program 65 41 106D. Consulting Services and Equipment 1 2 3

TOTAL BASELINE COSTS 371 460 831

Physical Contingencies 23 26 49Price Contingencies 17 60 77

TOTAL CONTINGENCIES 40 86 126

TOTAL PROJECT COST 411 546 957

Interest During Construction (IDC)World Bank 43 74 117others 95 55 150

TOTAL IDC 138 129 267

TOTAL FINANCING REQUIRED 549 675 1,224

Financing Plan

Source

IBRD - 350 350Export Credits - 200 200GOM 305 - 305HSEB 244 125 369

Total 549 675 1,224- _min -

a/ Including taxes and duties of about US$72 million equivalent.

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Schedule BPage 1 of 2

INDIA

SECOND HAHASHTRA PC'VER PROJECT

Summary of ProDosed Procurement ArranRements a/(US$ million equivalent)

-- Procurement Method-Project Element ICe LCe Other N.B.F. Totsl Cost

1. Civil Works 15.CO - - 40.6 g/ 88.6(11.0) (-) (-)( - ) (11.0)

2. Goods (Equipment a 367.0 - 6.3 480.4 828.7Machinery) (802.0) ( - ) (6.0) ( - ) (807.0)

S. Erection Servines 87 C - - - 87.6(8300) (-) (-) (-) (80.0)

4. Consulting Service4.1 Engineering

and Supervision - - - 29.9 29.9, _) ( _) ( -) (-) (-)

4.2 Technical Assistance - - 2.7 - 2.7(- _ ) ( _ ) (2.0) (2.0)

Total 409. - 0 0 88.09 957.4(848.0) ( - ) (7.0) ( - ) (850.0)

ai Contract values Include contingencies, taxes and duties (US874 million).b/ Civil work. portion. of the equipment contracts which wilt be procured under ICB

on a supply-and-erect basis./ Main eivil works, tn multiple packages, which will be procured under LCBprocedures.

i/ Erection portions of the equipment contracts which wit be procured under ICB on* supply-and-ereet basis.

ICB: International Competitive Bidding.LCD: Local Competitive Bidding.Other: Direct negtaltlons, or selection of consultants according to

Bank guidelins.N.8.F.: Not Bank-financad (including ULCB).Note: Figures In pef nthei a nre the aounts finaned by the Bank loan.

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Schedule BPage 2 of 2

Olebursemente

Amount of theLosn Allocated X of(Expressed In Expwdituro

Cntgomry DOI top Equivalent to b nFtnced

(1) Equlpment for: 100f of foreign*xpenditures1006 of localexpenditures(ox-factory)cost and 80gof local expnn-diturer tor otherit.eme procuredlocal ly

(a) for Pan. A (1) 162,000,000of the Project

(b) for Part A (1i) 85,000,000of the Project

Cc) for Part A (iII) 70,000,000of the Project

(2) Cl iI works and 41,000,000 00serection

(8) Coneultante' 2,000,000 100lservices

(4) Un llocated 20.000000

TOTAL 860,000,000

Estimated Bank diaburement (USI mliIIon)

Bonk Fiscal Year FY08 " FY94 FY95 FY96 FY97 FY98

Annual 59.6 84.9 71.8 118.2 88.1 7.2

Cmulative 89.6 74.7 146.5 259.7 842.6 860.0

/ Part A of tho project: Chandrapur unit 7.Port 8 of the proj act: HVIC transmission link.Part C of the project: acclerated distribution reinforc_emnt prograr

k/ Including special account Initial dposit of USf 19 millon.

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Schedule C

INDIA

SECOND MAHARASHTRA POWER PROJECT

Timetable of Key Processing Events

(a) Time taken to preparet 15 months, February 1991-May 1992

(b) Prepared bys Maharashtra State ElectricityBoard (MSEB)

(c) First Bank mission: February 1991

(d) Appraisal mission departures February 1992

(e) Negotiations: may 1992

tf) Planned Date of Effectiveness: November 1992

(g) List of relevant PCRs and PPARs:

Credit/Loan No. Project PCR Date PPAR No.

Cr. 377-IN Third Power Transmission March 1989Cr. 604-IN Fourth Power Transmission March 1989Cr. 572-IN Rural Electrification 6307Lr. 911-IN Second Rural Electrification 6307

The project was prepared by Mmes. JoOlle Chassard (Senior Financial Analyst)and Nandita Parshad (Economist) and Messrs. Argun Ceyhan (Senior PowerEngineer), Akbar Rhavaja (Financial Analyst), Mihir Mitra (Power Engineer),and Kari Nyman (Energy Economist).

9 - SHDL

PAGE of I

THE STATUS OF DM GROUP OPERATIONS IN INO

A. STATEMIT OF BANK LOU AND IDA CREDm

(As of March 81, 1902)

USS MlIIon(not of cancellations)

Loan or Fiscal YearCredit No. of Approval Purpose TR IDA 1/ Undlsbured 2/

90 Loans/ S626.1 - -17 Credits fully disbursed/cancel led - 10949.9

1172-IN 1982 Korba Thormal Power II - 888.7 6.772076-ZN 1982 Ramagundam Thermal Power II 260.0 - 8.391260-ZN 1963 Oujarnt Water Supply - 69.6 9.181319-IN 1988 Haryana Irrigation II 138.8 0.421869-IN 1983 Upper Indravati Hydro Power 170.0 30.421169-IN 1i86 Calcutta Urban Development III - 91.5 9.822238-ZN 1968 Contral Power Transmission 200.1 - 71.062095-ZN 1968 Himalayan Watershed Masngement 80.2 - 5.051424-IN 1904 Rainfed Areas Watershed Dew. - 256. 16.891426-IN 1904 Population III 70.0 2.071432-IN 1984 Karnataka Social Forestry 24.7 1.25387-IN 1984 Nhava Sheva Port 260.0 - 20.61

2398-IN 1984 Dudhichua Coal 109.0 - 17.542403-IN 1984 Cambay Basin Petroleum 218.6 - 29.412415-ZN 1064 Madhya Pradesh Fertilizer 172.6 - 8.4414S4-ZN 1904 Tamoi Nodu Water Supply - 38.6 190.5SF-12-IN 1904 Tamil Nadu Water Supply - 86.5 80.51SF-16-ZN 1904 Pertlyar Vagal II Irrigation - 17.6 11.421483-ZN 1904 Upper conan Irrigation 105.4 46.041496-IN 1984 Cujarat Medium Irrigation - 156.8 47.432416-IN 1904 Indira Serovar Hydroelectric 17.4 - 11.07SF-20-IN 1964 Indira Sarovar Hydroelectric - 13.8 17.071618-IN 1906 Indira Sarovar Hydroolectric - 13.2 16.082417-IN 1904 Railways Electrification 279.2 - 19.862442-IN 1904 Farakka II Thermal Power 278.8 69.92462-ZN 1904 Pourth Trombay ThermIaPower 136.4 - 9.701502-ZN 1984 National Cooperative

Dovolopment Corporation III - 188.6 12.481514-ZN 1065 Kerala Social Forestry 27.1 4.481S28-ZN 1085 National Agric. Extension I 32.9 12.441544-rN 19865 Bombay Urban Development 100.9 38.712497-IN 1065 Namarda (Gujarat) Dam and Power 200.0 - 200.00152-ZN 1986 Noards (Gujarat) Dam and Power - 100.0 10.0616S8-DN 10os Normade (Gu3 rat) Canal - 145.2 26.71159610N 1065 Second National Agricultural Ext. - 46.4 19.251811-IN 1086 Notional Social Forestry - 154.1 25.822498-ZN 1t65 Jhari. Coking Coal 57.7 - 5.082534-ZN 1906 National Highways 168.0 - 90.172644-ZN 1965 Chandrapur Thermal Power 260.0 - 94.682555-IN 1086 Riband Power Transmission 202.0 - 8.6125682-N 1065 Kerala Power 176.0 - 188.361619-IN 1086 West Bengal Minor Irrigation - 69.2 63.671621-ZN 1906 Maharashtra Composite Irrigation - 160.0 172.801622-ZN N1086 Kerla Water Supply and Sanitation - 21.9 7.591628-ZN 1906 West Bengal Population 46.9 16.6C1631-ZN 1066 National AgriculturZA Research SS - 59.0 39.842829-ZN 1NS Industrial Export Dev. Finance 90.0 - 8.662630-IN 1986 ICICI-Indus. Exp. Dev. Finance 160.0 - 9.241643-ZN 106 Gujorat Urban - 50.8 29.742B80-ZN 1088 Cement Industry 165.0 - 88.302861-DN 1906 ICICI - C emnt Industry 85.0 - 15.041666-IN 1086 Andhro Pramoeh It Irrigation - 140.0 126.222662-IN 1066 Andhra Pradeh SI Irrigation 41.0 - 41.002674-1N 1066 Combined Cycle Power 465.0 - 29.49

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PAGE 2 o0 S

US$ MilIton

Loan or Ftscal Year (net of cancellations)Credit No. of Approval Purpose I3D IDA 1/ Undisbursed 2/

2780-IN 1986 Cooperative Ferttlizer 118.8 - 22.891787-IN 1967 Bihar Tubee lls - 22.3 11.822769-ZN 19t7 ombay Water Supply &

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

Sewrere III 14S.0 92.8B1764-IN 1987 National Agric. Extension II - 70.2 89.271767-IN 1967 Gujarat Rural Roads 119.8 94.891770-IN 1987 National Wter Mnagement - 114.0 69.122766-ZN 1967 Oil India Petroleum 140.0 - 41.682796-IN 1967 Coal Mining & quality Improvemet 840.0 - 117.502813-IN 1967 Tlecomauni cation. IX 164.6 - 25.831760-IN 1967 Uttar Pradesh Urban Developamnt - 121.0 78.952827-1N 1987 Karnataka Power 260.0 - 197.412644-ZN 1987 National Capital Power 426.0 - 189.262846-IN 1967 Tulcher Therml 876.0 - 287.92284-ZN 1967 Madras Water Supply 68.0 - 86.482898-IN 1966 National Dairy II 200.0 - 200.001659-N 1988 National Dairy II - 160.0 42.702904-IN 106 Wesatern Gas Development 288.2 - 1.192M26-ZN 1988 Indus. Fin. & Toch. Asot. 360.0 - 66.22293;-N 1986 Railway Modernization III 890.0 - 216.282938-IN 1966 Karnataka Power II 220.0 - 188.802957-IN 1986 Uttar Pradesh Power 850.0 - 02.951923-ZN 1986 Tamil Nadu Urban Dev. - 269.7 181.671931-IN 1988 Bombay A Madras Population - 57.0 17.802994-ZN 1096 States Roads 170.0 - 170.001959-IN 1980 States Roads - 80.0 47.148024-ZN 1909 Nathpa Jhakri Power 485.0 - 448.291952-IN 1989 National Seeds III - 150.0 102.063044-IN 1989 Petroleum Transport 840.0 - 806.002006-IN 1989 Vocational Training - 211.0 176.882010-ZN 1989 Upper Krishna Irrigation II - 160.0 117.40$05-IN 1969 Upper Krishna Irrigation UI 65.0 - 86.008058-ZN 1909 Export Development 120.0 - 59.858059-ZN 1980 ICICI - Export Development 175.0 - 104.48'202-DN 1960 National Sericulture - 147.6 116.198093-IN 1909 Electrontes Industry Dew. 8.0 - 7.508094-IN 1969 ICICI - Electronics Ind. Dev. 101.0 - 60.873096-IN 1989 1081 - Electronies Ind. Dev. 101.0 - 76.088096-IN 1989 Maharashtra Powor 400.0 - 375.562057-IN 1989 Nat'l. Fasi y Welfare Trng. - 113.3 9.093119-IN 1990 Industrial technology Development 145.0 - 104.132064-IN 1990 Industrial Tochnology Development - S5.0 63.372078-ZN 1900 Punjab Irrigation/Drainage 145.3 134.062115-ZN 1900 Hyderabad Water Supply - 79.9 74.683199-ZN 1900 Cement Industry Restructuring 300.0 - 275.302100-IN lo0 Watershed Development (Hills) - 76.0 77.162180-DN 19S0 Technteian Education I 210.7 168.882131-ZN 190 Watershed Development (Plains) - 65.0 64.682138-ZN 1990 Population Training VII 61.9 74.032158-ZN 1990 Tamil Nadu Integrated Nutritton II - 68.2 88.623287-ZN 1900 Northern Region Tranmission 485.0 - 457.428289-ZN 1900 Private Power Uti I ities I (TEC) 98.0 - 64.692173-ZN 1001 ICDS I (Oriss A Andhra Pradesh) _ 96.0 92.218268-ZN 1901 Petrochemicals II 12.0 - 11.008259-DN 1961 Petrochemicals II 283.0 - 174.66826O-ZN 1901 A.P. Cyclone Emergency Reconstruction 40.0 - 40.002179-ZN 1991 A.P. Cyclone Emergency Reconstruction - 170.0 108.218300-ZN 191 Tami l Nadu Agricultural Developmn t 20.0 - 20.002215-ZN 1991 Tamil Nadu Agricultural Development - 02.8 60.622223-DN 1001 Technician Education II 807.1 274.902284-IN 1901 Maharaehtra Rural Water Supply - 100.9 97.873326-ZN 1991 Dam Safety 23.0 - 28.002241-ZN 1991 Dam Safety - 130.0 128.05

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PAGE 8 of 5

11*8 Million(not of cancel lations)

Lon or fiscal Year _ _ _ _ _Creit No. of Approvw l Purpose 8R IDA 1/ Undisbursed 2/

* 8884-IN 1961 Industrial Pollution Control 124 - 117.982252-IN 191 Industrial Polluoton Control - 81.6 29.903844-iN 191 Private Por UtilI tie It (USES) 200.0 - 107.46$$"-IN 191 Gas Flaring Ruction 450.0 - 848.84

* 2800-IN 1992 Child Survival ad Safe Motherhood - 214.6 201."72816-IN 1002 Structural i ustment - 250.0 100.60421-IN 1992 Structural Adjustment 250.0 - 100.00

2828-IN 1902 Mhbarehtra Forest.)" - 124.0 121.402826-IN 1092 Shrimp and fihb Culture - 86.0 66.962841-IN 192 West Benoal foresrr - 84.0 88.8228S0-SN 19m National ADS Control s - 94.0 61.66848I-ZN 1902 Power UtilIttes EffieIency 266.0 - 250.90

Total 18018.6 18092.0 11117.1of which has been repaid 8260.9 810.8

Total now outstanding 14767.0 17261.2Amount Sold 188.0of which has been repaid 188.8

Total now hold by Baok and IDA 8J 14767.6 17281.2

Totel undisbursed (excluding ) 6778.7 4021.2

1/ IDA Credit amounts for SOR-dnominated Credits are expressed In terms of their US dollarquivalents, as establishe at the tt.. of Credit notiations and as subsequentlypresented to the Board.

2/ Undisbursed amounts for S1R-denomimnted IDA Creits are derived as the undisbursed balanceexpresseW In SOR equivalents (in turn derivod as the difference betwen the original principalexpreseo In SORe (based on the exchange rate as established at the time of Credit negottations)and the cumulative disbursements converted to SDR eqivalents at thoexchange r prleil nIat the respective dates of disursements ls canael lotions expressed In SOR quivalents convertedto US dollar quivalents at the SR/US dollnr exchange rats In effect on March 81, 1992.

8/ Prior to exchange adjustment.

e Not yot ffective.

- 12 - S-EDULED

PAGE 4 OF S

B. STATEMET OF IFC IDNESTUENTS

(As of March 81, 1992)

Amount (USS milIIon)

FTscal Year Company Loan Equlty Total

1969 Republic Forge Company Ltd. 1.50 - 1.6019596-92 Kilosk,r Oil Engine Ltd. 0.86 0.80 1.661900 Assam Sillimanito Ltd. 1.80 - 1.881961 K.S.B. Pumps Ltd. 0.21 - 0.211968-86 Precision Bearings India Ltd. 0.65 0.99 1.081964 Fort Gloster Industries Ltd. 0.61 0.40 1.211984-75-79/90 Mahindra Ugin. Steel Co. Ltd. 11.81 2.84 14.651964 Lakshml Maehine Works Ltd. 0.96 0.80 1.a21967 Jayshree Chemicals Ltd. 1.06 0.10 1.151987 Indian Explosives Ltd. 8.60 2.88 11.481969-70 !uarl Agre-Chemlcala Ltd. 16.15 8.76 18.911977-87 Escorts Limited 15.55 - 16.651978-87/91 Housing Development Finance Corp. 104.00 2.10 108.101980/82/87/69 Despak Fertilizer and

Petrochemicals Corporation Ltd. 7.C0 4.28 11.781982 Coromandel Fertilizer. Limited 1C.98 - 1.6881981-86-89 Tata Iron and Steel Company Ltd. 72.06 21.46 98.521981-82 Nagarjuns Coated Tubes Ltd. 1.60 0.24 1.741982-86-87/91 Negarj na Signod. Limitod 2.99 0.41 8.401981-82 Nagarj una Ste. l Limited 2.88 0.24 8.121902 Ashok Leyland Limited 28.00 - 26.001982 Tho Bombay Dyeing and 0.00

Manufacturing Co. Ltd. 18.80 - 16.801983 Bharat Forgo Copany Ltd. 16.90 - 16.901982-87 The Indian Rayon Corp. Ltd. 14.67 - 14.671984-sB The OGwller Rayon Silk Manu-

facturing (Weaving) Co. Ltd. 15.96 - 15.961986/91 Bihar Sponge 15.24 0.68 1C.921985 B3aJj Auto Ltd. 28.98 - 28.931986 Modi Cement 13.06 - 18.051986-86/90-91 India Lease Development Ltd. 6.50 0.76 9.281986 Larsen and Toubro Ltd. 16.62 - 16.621986 India Equipment Leaslng Ltd. 2.60 0.80 2.801986 BajaJ Tempo Limited 80.54 - 80.641986-6T The Groet Eastern Sh ppit

Company Ltd. 6.00 10.66 18.681987 Gujarat Nbrmada Valley Fertilizer U8.07 - 88.071987 Hero Honda Motors Ltd. 7.74 - 7.741987 Wisco Limited 4.70 - 4.701967-89/90 Titan Watche Limited 22.02 0.66 22.561967 Export-Import Sank of India 14.84 - 14.841967 Gujarat Fusion Glass Ltd. 7.62 1.70 0.221967 The Gujorst Rural Housing 0.00

Finance Corp. - 0.19 0 191987 Hindustan Motor. Ltd. J8.08 - U8.031988 Invel Transmissions Ltd. 1.07 1.071969 Wrl Advanced Technology 0.20 0.201989-90 Keltron Telephone Intru , Ltd. - 0.40 0.401989-92 Gujarat Stats Fertilizer 40.81 - 40.811969 Ahmedabad Electricity Company, Ltd. 20.69 - 20.591990-91 Tate Electric 107.98 - 107.961990 JSB India Securities Firm - 0.87 0.871981-90 Mahindra £ Mahindra Ltd. 26.19 6.97 87.161990 UCAL Fuel System Ltd. - 0.6 0.681991 Indust. Credit & Investment Corp. of India - 26.41 26.411991 CESC Ltd. 2111 - 21.111991 Herdt Illa Oxides and Electronics Ltd. -0.2 0.291091 Infrastructure Lesing & Financial Service 16.00 1.81 16.811961 Triveni Pool Intairdril Ltd. (TPIL) - 0.98 0.981981 Bombay Electric 68.00 - 86.001991 YVrun Transport, Storage a Comunications 17.04 2.86 19.421991 TOICI Development Finance Comp anies - 2.10 2.181991 Export Finance 0.86 - 0.85

13 - ~~~~~SCHOULE D- 13 - _PAGE b OF 6

Amount (USS ml I on)

Flomal Yer Company Loan Equity Tot"l

1991 ATIC Indatrieo Export Financ 0.28* 1992 Block KG-OS-tV 6 .20 8.20

1992 VS= VCF - 117 1.171992 Arvind ll. 9.00 9.03 18.081992 Kotak Mbhindra - 0.80 0.801992 SKf Bearinp 11.60 - 11.60

TOTAL GROSS CIMUITUITNS 90.068 119.09 1089.77

Lost Cancellation, Tertnatiom, ExchaneAdjuatmeat, Repay_mea, Writeoffe and Sales 452.80 28 61 461.41

Now Hold by IFC 497.66 90.48 86.836

Undisburel 198.39 40.64 289.08m

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