Document of

The World Bank

FOR OFFICOAL USE ONLY

Report No. P-4797-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 AMOUNT EQUIVALENT TO US$260 MILLION

TO INDIA

FOR THE

SECOND KARNATAKA POWER PROJECT

April 21, 1988

This documcnt has a restricted distsbution atrd may be used bi recipients only in the performance oftheir offilcial duties. Its contents -way not otherwise be disclosed without World Bank authorization.

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CURR NCY EQUIVALENTS

Currency Unit Rupees (Rs)Rs 1.00 = Paisa 100US$1.00 Rs 13.0

MEASURES AND EQUIVALENTS

1 Kilometer (km) 1,000 meters (m) 0.6214 miles (mi)1 Meter (m) = 39.37 inches (in)1 Cubic Meter = 1.31 cubic yard (cu yd) - 35.35 cubic

feet (cu ft)1 Hectare (ha) = 10,000 square meters i 2.471 acres (ac)1 Kilogram (kg) 5 2.2046 pounds >(lb)1 Kilovolt (kV) = 1,000 volts (V)1 Kilovolt ampere (kVA) = 1,000 volt-amperes (VA)1 Megawatt (MW) 1,000 kilowatts (kW) = 1 million watts

ABBREVIATIONS AND ACRONYMS

CIF - Cost Insurance FreightGOI - Government of IndiaGOK - Government of KarnatakaIBRD - International Bank for Reconstruction and DevelopmentiCB - International Competitive BiddingKEB - Karnataka Electricity BoardKPC - Karnataka Power CorporationLCB - Local Competitive Bidding,LIB - Limited International BiddingSCADA - System Control and Data AcquisitionSOE - Statement of ExpendituresSTRS - Sharavathi Tailrace Scheme

FISCAL YEAR(for KEB and KPC)

April 1 to March 31

FOR OFFICIAL USE ONLY

INDIA

SECOND KARNATAKA POWER PROJECT

Loan and Project Summary

Borrower: India, actin, by its President

Beneficiaries: Karnataka Power Corporation (KPC); and,Karnataka Electricity Board (KEB)

Amount: US$260 million equivalent

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

Onlending Terms: Government of-India (GOI) to Government of Karnataka(GOK): As part of Central &ssistance to Karnatakafor development projects on terms and conditionsapplicable at the time.

GOK to KPC: About US$130 million, repayment overtwenty years, including a five-year grace period,at an -aterest rate of not less than 11.5X p.a.

GOK to KEB: About US$130 million, repayment overtwenty years, including a five-year graceperiod, at an interest rate of not less than11.5% p.a.

GOI bears the foreign exchbange and interest rate risks.

Financing Plan: GOK US$196.0 millionKPC US$ 39.6 millionKEB US$ 74.5 millionIBRD US$260.0 million

TOTAL US$570.1 mill'ion

Economic Rate of Return: 12Z

Staff Appraisal Report: No. 6988-IN, dated April 19, 1988

Maps: IBRD Nos. 20892 and 20893

This document has a restricted distribution and may be used by recipients only in the pd-ormanceof their official duties. Its contents may not otherwise be disclosed without World Ba-e. auul tization.

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

TO THE EXECUTIVE DIRECTORSON A PROPOSED LOAN TO

INDIAFOR THE SECOND KARNATAKA POWFR PROJECT

1. I submit, for your approval, a proposal for a loan to Indiaequivalent to US$260 million. The proposed loan, to be issued at thestandard IBRD variable interest rate, will be repayable over 20 years,including a 5-year grace period. The loan will help to finatce a projectdesigned to alleviate power shortages, reduce energy losses, and improveoperational efficiency in the power system of Karnataka, a state in southernIndia.

2. Background. The supply of power in Karnataka depends primarily onthe development of local hydroelectric resources. Potentially exploitableresources in the State are sizable and economically attractive. However,lengthy project preparation, primarily caused by the need to obtainenvironmental clearances, has left the State with chronic power shortages.The Karnataka Electricity Board (KEB) has tried to cope with the shortages byimposing restrictions on the use of electricity by its large consumers. Thelevel of these restrictions has been increasing so that large consumers noware allowed to use only 40% of their contracted demand and 80% of theirhistorical energy consumption. Industries have reacted to these restrictionsby installing their own generatinj capacity, usually in the form of dieselgenerators. Although industries should be permitted to invest in captiveplants as a second best solution, the use of diesel -- a high value importedfuel - is An expensive way to meet the State's power requirements. Ittherefore is vital that the State's low cost hydroelectric resources bedeveloped at an accelerated pace in order to meet the power demand. TheSharavathi Tailrace scheme (STRS) is particularly attractive since itbenefits from the regulation provided by upstream reservoirs and involvesno resettlement and minimal submergence of forest land.

3. Karnataka is a large state with an area of 191,800 square kilometers.Over 1,900 MW of its 2,300 NW of generating capacity is located in thesouthwest of the State, while its major demand centers such as Bangalore arelocated in the southeast, 400 km away. Underinvestment in both thetransmission and distribution networks has led to two problems: poor qualityelectrical service, and high energy losses. Outages are frequent and largevoltage fluctuations are widespread. The outages result in a loss ofproduction, and the voltage fluctuations impose a substantial cost onconsumers in the form of equipment damage and the expense of installingvoltage stabilizers. Energy losses, which average about 22% of netgeneration, also represent a substantial cost to the economy. Although someof these losses are caused by non-technical problems involving metering andbilling, others are clearly technical in nature. Technical losses could bereduced by at least 5%, saving the economy about US$27 million per year.

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4. The first Karnataka Power Proje:t, approved in June 1987, is makingit possible for the State to develop the second stage of the Xalinadihydroelectric complex (270 MW) and reinforce part of the transmissionnetwork. The project also includes: a study to determine an effectivetreatment for the leak in the Talakalale dam, upstream of the STRS; areactive compensation study of the transmission system; and preparation of a20-year distribution master plan for Bangalore, the largest city in theState. The proposed Second Karnataka Power Project is designed to complementthe first one by assisting the State in developing an additional 240 MW ofhydroelectric plant and repairing the Talakalale dam, while, in parallel,placing increased emphasis on needed investment in transmission anddistribution. The transmission component is intended to improve reliabilityand reduce energy losses in the bulk power system; it is based on studiesrecently completed by KEB. The distribution component addresses needs in theBangalore system that are so critical they are justified independently ofthe long-term master plan about to be prepared. Distribution improvementswill help KEB avoid further deterioration in service, especially in thecommercial and industrial areas of the city, and prevent damage to equipment.In addition, the proposed Supervisory Control and Data Acquisition (SCADA)system will allow KEB to respond more quickly to system disturbances, therebyreducing outage times.

5. In terms of institutional development, the first Karnataka PowerProject focuses primarily on the financial performance of KEB and KPC. Theproposed Second Karnataka Power Project complements this initiative byemphasizing improvement of KEB's operational efficiency. It includesfinancing for tools, equipment, and training to modernize KEB's methods ofbuilding and maintaining its transmission and distribution systems.

6. Rationale for Bank Involvement. The proposed project presents anopportunity for the Bank to support state and national efforts to alleviatepower shortages in the Southern Region by exploiting indigenous hydroelectricresources. The project allows the Bank to participate in the augmentationof transmission and distribution capacity which will reduce system lossesand improve service quality. Since it involves further association with thebeneficiaries, Karnataka Power Corporation (KPC) and Karnataka ElectricityBoard (KEB), the project also permits the Bank to consolidate the financialand institutional improvements started under the first Karnataka PowerProject. A new component of the project will be to improve KEB's operationalefficiency by: introducing improved tools and work methods for building andmaintaining its transmission and distribution systems; introducing newcost-effective technologies such as mobile transformers; and introducing asupervisory control and data acquisition system to improve operatorresponsiveness to power system disturbances.

7. Project Objectives. The proposed project is designed to: alleviatethe acute shortage of generating capacity in Karnataka and the SouthernRegion by developing the Sharavathi Tailrace Hydroelectric Scheme (STRS);reduce the risk to downstream structures and human settlements by repairing

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the Talakalale dam; provide transmission capacity to evacuate power from theSTRS; provide transmission and distribution capacity to reduce energy losses,and improve the quality of electric service; reduce capital and operat.ngcosts of distribution by introducing new technologies; and improve KEB'scapability to construct, maintain, and control its transmission anddistribution systems.

8. Project Description. The components of the proposed project will beimplemented by KPC and KEB. KPC will be responsible for: construction ofthe 240 MW STRS including a 60 m high 736 m long concrete gravity dam and anoutdoor powerhouse with four 60 MW generating units; compensatoryafforestation associated with the STRS; and repair of the Talakalale dam, a60 m high masonry structure. KEB will be responsible for: construction ofabout 250 km of double circuit 400 kV transmission lines, 250 km of doubleand single circuit 220 kV transmission lines, and 225 km of single circuittransmission lines on existing towers, together with the associatedsubstations; laying of about 6 km of 66 kV underground cable together withthe construction of associated substations; reinforcement of the 11 kVprimary distribution grid in Bangalore; installation of a computerizedcontrol center for the distribution system; the acquisition of tools andequipment, and consulting services to train KEB personnel in the use of toolsand equipment for constructing and maintaining transmission and distributionfacilities; and consulting services to assist with the design andconstruction of 400 kV lines and substations.

9. The proposed project will be implemented over a period of about sevenyears at an estimated cost of US$467.1 million. Interest during constructionadds US$103 million. The foreign exchange component is estimated to beUS$195.2 million (34% of the total). The cost estimates and financing planare shown in Schedule A. Procurement and disbursement arrangements are shownin Schedule B. A timetable of key project processing events and the statusof Bank Group operations in India are shown in Schedules C and Drespectively. Two maps highlighting the project, are attached -- IBRD Nos.20892 and 20893. A Staff Appraisal Report "Second Karnataka Power Project"dated April 19, 1988 is being distributed separately.

10. Agreed Actions. KPC agreed to: (a) present to the Bank asatisfactory plan for repairing the Talakalale dam and sign a contract witha qualified firm by October 31, 1989, to perform the necessary work; (b)present to the Bank no later than one year before the expected completionof the structures, its proposed arrangements for periodic inspection andmaintenance of the dam and related structures; and (c) take all measuresnecessary for KPC to earn a rate of return after interest of 3%.

11. GOK agreed to: (a) onlend the proceeds of the loan applicable to KPCand KEB respectively at an interest rate of not less than 11.5%; (b) causeKEB to complete the detailed route survey for the 220 kV Gersoppa-Talaguppatransmission line and, not later than December 31, 1988, make an applicationto OI for clearance under its Forest (Conservation) Act; (c) cause KEB toretain, by December 31, 1988, the services of a qualified firm to review its

-4-

work planning procedures, introduce new tools and equipment and train KEBpersonnel in their use; (d) cause KEB to take all measures necessary for theBoard to earn a rate of return after interest of 3%; (e) cause the Board byApril 1, 1990 to collect its accounts receivable from its principal debtorsas of March 31, 1987, and maintain accounts receivable, with respect to salesafter March 31, 1987, at a level equivalent to two months' sales; and (f)cause the Board to clear sums owed to KPC, not covered by a letter of credit,within 30 days of billing. The conclusion of a subsidiary loan agreementbetween GOK and KPC is a condition of effectiveness of the proposed loan.

12. Justification. The economic benefits of the proposed projectcomprise: an increase in the amount of power available to consumers; animprovement in the quality of power supply; a reduction in system losses; andgreater efficiency in the use of assets in the public power supply system.The least cost power development program for the Southern Region, of whichthe proposed project is an integral part, is expected to have a quantAfiableeconomic rate of return of at least 12%.

13. Risks. Except for those risks pertaining to the Talakalale dam,there are no unusual technical risks associated with the Project. The risksrelated to the Talakalale dam are being minimized by the use of specializedconsultants to investigate and supervise the repairs needed. There is a riskthat these consultants will find that more extensive repairs are requiredthan those currently envisaged. However, if this occurs neither therationale for nor the desirable timing of the STRS will be affected. Thegeological and geotechnical information is adequate and indicates goodfoundation conditions. KPC and KEB have sufficient staff available to carryout the work who are experienced in supervising and executing activitiessimilar to those of the project. Consultants will be used in all areas inwhich their in-house expertise is lacking.

14. Recommendation. I am satisfied that the proposed loan complies withthe Articles of Agreement of the Bank and recommend that the ExecutiveDirectors approve it.

Barber B. ConablePresident

Attachments

Washington, D.C.April 21, 1988

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Schedule A

INDIA

SECOND KARNATAKA POWER PROJECT

Estimated Costs and Financing Plan

Estimated Cost: 1/

Item Local Foreign Total----- (US$ Million)--

Preparatory Works 6.0 0.1 6.1Afforestation 0.5 - 0.5Civil Works 43.7 8.6 52.3Power House Equipment 36.3 53.4 89.7Repair of Talakalale Dam 7.4 3.0 10.4Transmission Lines 51.9 9.4 61.3Substations 29.2 27.9 57.1Distribution Equipment 31.9 20.5 52.4Institutional Development 3.3 3.4 6.7Engineering and Administration 33.3 1.0 34.3Total Base Costs 243.5 127.3 370.8

Physical Contingencies 20.2 9.6 29.8Price Contingencies 43.2 23.3 66.5Total Project Cost 306.9 60-.2 467.1

Interest during Construction: 68.0 35.0 103.0

Total Financing Requirements: 374.9 195.2 570.1

1/ Including about US$82 million in taxes and duties.

Financing Plan:(US$ Million)

Source Local Foreign Total

IBRD 101.0 159.0 260.000K 159.8 36.2 196.0KPC 39.6 - 39.6KEB 74.5 - 74.5

Total 374.9 195.2 570.1

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Schedule BPage 1 of 2

INDIA

SECOND KARNATAKA POWER PROJECT

Procurement Method and Disbursements(US$ Million) a/

Procurement MethodICB bl LCB Other c/ -Total

STRS Dam and Powerhouse 68.6 7.1 75.7(44.6) t-) (44.6)

Afforestation 0.6 0.6(0.4) (0.4)

Turbo;enerators 90.3 90.3(59.6) (59.6)

Mechanical Equipment 14.7 14.7(9.9) (9-9)

Electrical Equipment 7.2 0.5 7.7(6.3) (-) (6.3)

Talakalale Dam 13.6 13.6- ~ (8.0) (8.0)

Transmission Live5-and 131.5 16.3 147.8Substations - (90.4) t-) (90.4)

Distriwition Equipment 68.2 68.2(36.9) (36.9)

SCADA 3.2 3.2(2.1) (2.1)

Field, Office, and Lab Equipment 0.2 1.2 1.4-(0.2) (-) (0.2)

Training and Consulting 1.6 1.6(1.6) (1.6)

Engineering and Administration 42.3 42.3C-) (. )

397.5 25.1 44.5 467.1(258.0) (2.0) (260.0)

a/ Amounts include taxes and duties (US$82 million), and figures inbrackets indicate the Bank-financed portion.

b/ Including US$0.8 million procured by direct contracting.ci/ Others: Force account and administrative overheads.

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Schedule BPage 2 of 2

Disbursements

Category Amount Percentage Financed

(1) Civil works $ 40,000,000 65%

(2) Equipment and 180,000,000 100% of foreign expendi-materials tures, and 100% otflocal

expenditures (ex-factorycost)

(3) Talakalale Dam -repair 8,000,000 70Z-

(4) Afforestation 400,000 80%

(5) ConsultantsW services ' .and training 1,600,00P 100io

(6) Unallocated '- 30,000,000

'Total .260,000,000

Estimated Disbursements:

(US$ Miliion)Bank FY FY89 FY90 FY91 FY92 PY93 FY94 FY95 FY96 FY97

Annual 26.4 28.8 48.2 52.0 62.4 30.6 7.8 3.0 0.8

Cumulative 26.4 55.2 103.4 155.4 217.8 248.4 256.2 259.2 260.0

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Schedule C

INDIA

SECOND KARNATAKA POWER PROJECT

Timetable of Key Project Processing Events

(a) Time taken to prepare: Two years

(b) Prepared by: Karnataka Power Corporation;Karnataka Electricity Board-;Central Water Commission

(c) First Bank mission: M&rch, 1987

(d) Appraisal mission departure; May, 1987

(e) Negotiations March, 1988

(f) Planned Date of Effectiveness: September 1, 1988

(g) Last relevant PCR and PPAR: No. 6307

9 sch~~~~~~~~eedulePage 1 R

TUE STATU OF BANM GROUP OPERATIONS IN ID0IA

A. HT&TEHENT QF UA-tK LOANS UD IDA CREDITS(As of March 31, 1988)

US$ millionLoan or Fiscal (get of Cancellations)Credit Year of-No.-- A221OV41 PUx,Dose la * ak DLl Udisbursz

61 Loaul/ 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 Pover 50.0 - 1.89963-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 Cashew ut - - 22.0 7.151027-IN 1980 Singrauli Thermal II - 300.0 19.151034-IN 1980 Karnataka 8ericulture 54.0 5.711046-IN 1980 Rajasthan Water Supply 4 Sewerage - \ 80.0 22.81053-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 Mfahanati Bargages - 83.0 13.341082-IN , 1981 Madras Urban Development II - 42.0 4.54.1108-IN 1981 M.P. Medium Irrigation - - 140.0 31.211116-IN 1981 Karnataka Tank Irrigation' - 54.0 12.261125-IN 1981 Lazira Fertilizer Project - 399.1 .24.561138-IN 1981 M.P. }picultural Ext. II 37.0 11.311146-IN 1981 Natiow'l Cooperative

Development Corp. II - 125.0 8.401172-IN 1982 Kotba Thermal Power Project II - 400.0 109.171177-IN 1982 Madhya Pradesb Major Irrigation - 220.0 109.421178-IN 1982 West engsal Social Yorestry - 29.0\ 14.661185-IN 1982 Kanpur Urban Development - 25.0 4.552076-IN 1982 Rmagundam Thermal Power II 300.0 - 115.761219-IN 1982 Andbra Pradesh Agricultural Ext. - 6.0 2.592123-IN 1982 Refineries Rationslization 200.0 - 8.362165-IN 1982 Rural Electrification III 304.5 - 32.731269-IN 1982 Kallada Irrigation - 60.0 3.742186-IN 1982 Kallada Irrigation -20.3 - 15.471280-IN 1983 Gujarat Water Supply - 72.0 58.121286-IN 1983 Jam_u/Kasbuir and

'Raryana Social forestry - 33.0 17.901288-IN 1983 Chambal Madhya Pradesh

Irrigation II - 31.0 10.03,1289-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

- 10 - Schedule DPage 2 of 4

US$ millionLoan or Fiscal (Net of Cancellations)Credit Year ofN Anroval Aurgl IDA 1/ Undisbursed VJ

2241-IN 1983 South Boasoein Gas Development 139.3 - 16.461319-IN 1983 laryana Irrigation II - 150.0 65.901332-IN 1983 U.P. Public Tubewells II - 101.0 56.021356-IN 1983 Upper Ildravati 8ydro Power - 170.0 120.382278-IN 1983 Upper Indrovati 8ydro 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 Rimalayan Watershed Management 46.2 - 39.031383-IN 1983 Xabaraobtra Water Utilization - 32.0 18.822308-IN 1983 Maharashtra Water Utilization 22.7 - 22.642329-IN 1983 Madhya Pradesb 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 Pradebh 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 Gujarat Mediu Irrigation - 172.0 144.882416-IN 1984 Indira Sarover Xydroelectric 157.4 - 152.58SF-20-IN 1984 Indira Sarovar U$roelectric - 129.8 168.542417-IN 1984 Railways Electrification 280.7 - 207.502442-IN 1984 Farakka II Thermal Power 300.8 - 270.092452-IN 1984 Fourtb Trombay Thermal Power 135.4 - 71.081502-IN 1984 Rational 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 Developmuent - 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 Namada (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 Rihand Power Transmission 250.0 - 164.642582-IN 1985 Kerala Power 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

- ll - ~~~~~~~Scbedule DPage 3 of 4

Us$ millionLoan or Fiscal (Net of Cancellations)Credit Year ofgo. " M Anol Pursose ink IRA 11 Uadisb.rkAz I/

2630-IN 1986 ICICI-Indus. t p. Dev. Finance 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 Andhbr Pradesh II Irrigation - 140.0 176.882662-IN 1986 Andhra Pradesh II Irrigation 131.0 - 131.002674-IN 1986 Combined Cycle Pover 485.0 - 429.072729-IN 1986 Cooperative Fertilizer 150.2 - 48.522730-IN 1986 Cooperative Fertilizer 152.0 - 89.211737-IN 1987 Bihar Tubevells - 68.0 76.432769-IN 1987 Bombay Water Supply 6

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 goads - 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 S 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-IN 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 bas been repat 1.855.9 377L1

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

Total now beld by Bank and IDA 11 10,829.6 14,628.1

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

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

3 Undisbursed amounts for SDR-dencminated IDA Credits are derived from cumulativediab,irsements 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 bigher than the original principal.

J Prior to exchange Adjustment.

* Not yet effective.

SCHEDULE D- 12 - Page 4 of 4

B. STATEMENT OF IFC INVESMENTS(As of September 30, 1987)

Fiscal Amount (U8$ million)

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 0.4 1.01964 Fort Gloster Industries Ltd. 0.8 0.4 1.21964-75-79 Mahindra Ugine Steel Co. Ltd. 11.8 1.3 13.11964 Lakabmi Machine Works Ltd. 1.0 0.3 1.31967 Jayybree 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 15.6 - 15.61978 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. 51.4 - 51.41981 Nahindra, 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 2.9 0.2 3.11982 Asbok Leyland Limited 28.0 - 28.01982 The Bombay Dyeing and

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

facturing (Weaving) Co. Ltd. 16.0 - 16.01985 Bibar Sponge 15.1 0.7 15.81985 Bajaj Auto Ltd. 23.9 - 23.91985 Modi Cement 13.0 - 13.01985 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 35.6 - 35.61987 Hero Honda Motors Ltd. 7.7 - 7.71987 Wimco Limited 4.7 - 4.71987 Titan Watches Limited 15.2 0.4 15.61987 Export-Import Bank of India 15.0 - 15.01987 Gujarat Fusion Glass Ltd. 7.5 1.7 9.21987 The Gujarat Rural Rousing

Finance Corp. - 0.2 0.21987 Hindustan Motors Ltd. 37.6 37.6

TOTAL GROSS COMMITMENTS 495.5 18.5 514.0

Less: Cancellations, Terminations,Repayments and Sales 276.4 8.0 284.4

tov Held 219.1 10.5 229.6# "_ mm...

Undisbursed 149.8 2.9 152.7.==== can ..

IBRD 20893

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