The objective is to increase the delivery of electricity to customers and to improve the operational efficiency and system reliability in distribution of electricity in selected areas in Andrah Pradesh.
The Project consists of the following components:
Component One: Power Transmission System Strengthening
This component includes priority investments in 220 kV, 132 kV, 66 kV, and 33 kV lines and associated substations for system augmentation. These investments will reduce overall transmission system losses and increase the transfer capability of the state transmission network.
Component Two: Smart Grid Development in Urban Areas
This component would support investments in smart grids and underground cables in selected cities as part of smart cities initiative promoted by GoI. These investments would include smart meters on selected consumers, distribution SCADA, automated sub-stations, and ring main units. It also includes investments on distribution network strengthening and augmentation (33kV and 11kV) in urban areas to meet the growing power demand, reduce technical and commercial losses, improve operational efficiency and increase the system reliability especially in coastal towns prone to natural calamities.
Component Three: Distribution System Strengthening–Rural
This component would support strengthening and augmentation of the distribution network (33kV and below) and construction of the High Voltage Distribution System (HVDS) in rural areas. The majority of the investments under this component are located in Anantapur and Kurnool. The state of infrastructure in these districts is poor and the majority of power transformers, distribution transformers and feeding lines are overloaded leading to frequent outages and high technical losses.
Component Four: Technical Assistance for Institutional Development and Capacity Building
This component would improve the project management capabilities and commercial performance of the Andhra Pradesh utilities by
(i) Improving ICT systems.
(ii) Improving business processes.
(iii) Supporting the supervision of contracts through Project Management Consultants, as required.
(iv) Building staff capacity through training, workshops and study tours.
For more information about project financing, please review the project summary.
The Bank has decided to use the World Bank’s (WB) Environmental and Social Safeguard Policies (ESSP) since (i) they are consistent with the Bank’s Articles of Agreement and materially consistent with the provisions of the Bank’s Environmental and Social Policy and relevant Environmental and Social Standards; and (ii) the monitoring procedures that the WB has in place to ascertain compliance with the WB ESSP are appropriate for the project. Under the WB ESSP, the project has been assigned Category B, as the potential impacts are expected to be site specific, readily identified and addressed through mitigation and monitoring measures that were defined in an Environmental and Social Management Framework (ESMF) prepared for the project. An Environmental and Social Management Framework has been prepared to address the Environmental and Social issues that have been identified during the initial review of the project. The ESMF has been disclosed and is posted on the following WB website: http://documents.worldbank.org/curated/en/435591472024110073/Environment-and-social-managementframework.
Senior Investment Operations Specialist
Multilateral Institutions Division Depart of Economic Affairs
Ministry of Finance,
Republic of India