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Private SectorProject Information Tala-Delhi Power Transmission Project. Refer Document
17-Nov-2018
PID : 21781 Multi State-India
Description IND: TALA-DELHI POWER TRANSMISSION
Objectives and Scope The Project will evacuate power from Tala Hydro Electric Power Project in Bhutan as well as transfer surplus power from India's eastern region to the power-deficit northern region. The Project will provide additional and more reliable power supply to all categories of industries and households that suffer from power shortage in the northern region of India. The Project will be key to the success of Tala Hydro Electric Power Project in Bhutan and will improve the efficiency of power generation plants in eastern India. The success of the Project is expected to induce stronger flows of private investments to the Indian power transmission sector and increase the volume of power supply and its quality in India.
Status of Operation/Construction Physical completion was achieved in September 2006. All Senior Lenders declared Project Completion and Financial Completion in July 2010.
Linkage to Country/Regional Strategy

The overall objective of ADB's operational strategy for India is to reduce poverty by achieving faster and broad-based economic growth, developing human resources, narrowing gender disparities, strengthening good governance for socioeconomic development, enhancing and sustaining private sector activities, protecting the environment, and promoting regional cooperation. However, India's lack of access to concessional ADB assistance constrains ADB's operations in India. The operational strategy addresses poverty reduction primarily through support for infrastructure-led growth.

Consistent with its overall country strategy for India, ADB focuses its operations on removing infrastructure bottlenecks and improving supply-side by supporting priority public investments and catalyzing private investments in the power sector. Particular emphasis is on creating a conducive private sector environment, including the regulatory framework, competitive mechanisms, and appropriate tariff setting mechanisms, as well as risk-sharing and risk-mitigating measures. In this respect, the role of build-own-transfer (BOT) projects, which are developed under competitive and transparent processes to meet the infrastructure needs of ADB's developing member countries, is significant in attracting private sector investment to the energy sector. Public-private partnership is also encouraged to take advantage of the higher operational efficiencies that private operators can achieve. The project is consistent with ADB's sector strategy.

 

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