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LESSONS:

India: Power Transmission Improvement (Sector) Project

sector: Energy | country: India

The change in the set of subprojects actually supported (versus the candidate subprojects or those short-listed for support at appraisal) indicates the need for a thorough due diligence on the likelihood of the need for a particular transmission subproject during the intended project timeline – especially when it is linked to the coming onstream of additional power generating capacity. In this specific context, due consideration should have been given to (i) the situation with regard to natural gas availability in 2000 (as three subprojects were clearly linked to the expansion of existing gas fired power plants), and (ii) realistic project timelines for large hydroelectric projects in India.

Nonetheless, the flexibility required to change the list of subprojects for support, which was
accorded by the sector loan approach, indicates that the sector modality was appropriate.

Proper planning (and where needed, advance action), effective project monitoring, and motivated and well-trained personnel make possible the timely and successful implementation of power transmission projects.

Regular ongoing interaction with the Government is necessary to ensure that the broader strategic
aspects (such as regulatory issues, commercialization, etc.) are in place to make infrastructure projects successful.

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