A/' S s / Y - //ADof, nm of

The World Bank

FOR OFFICIAL USE ONLY

MI C Rt')FI CHE COPY

Report No. :P- 5893 IN Type: (PM)Title: RENEWABLE RESOURCES DEVELOPMENAuthor: MAGDALENA MANZO Rqe No. P-5893-IINExt.:81466 Roomr:G-2051 Dept.:AS2EG

MEMORANDUM AND RECOMEAlDATION

OF THE

PRESIDENT OF THE

INTERNATIONAL DEVELOPIENT ASSOCIATION

AD

IRNATIONAL BAN FOR RECONSTRUCTION AND DEVELOPMENT

TO THE

EXECUTIVE DIRECTORS

ON A PROPOSED

IDA CREDIT OF SDR 81.6 MILLION (US$115 MILLION EQUIVALENT)

TO INDIA

AIND AN IBID LOAN IN AN AMOUNT EQUIVALENT TO US$75 MILLION

TO

TAML NADU NEWSPRINT AND PAPERS LIMITED

(WITH THE GUARANEE OF INDIA)

FOR

RENEWABLE RESOURCES DEVOPMENT PROJECT

NOVEMBER 30, 1992

ibis docameat bas a restricted distribution and may be used by recipients only in the performance oftheir offical duties. Its contents may not othewise be dislosed without World Bank authorization.

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CURRENCY EQUIVALENTS(as of July, 1992)

Currency Unit - Rupees (Rs)Rs 1.00 = Paise 100Rs 1,000,000 - US$38,462US$1.00 = Rs 26

MEASURES AND EQUIVALENTS

1 Meter (m) = 39.37 inches (in)1 Cubic Meter (m) = 1.31 cubic yard (cu yd) = 35.35 cu. ft.1 Ton (t) - 1,000 kilograms (kg) = 2,200 lbs1 Kilovolt (kV) = 1,000 volts (V)1 Kilovolt-ampere (kVA) - 1,000 volts-amperes (VA)1 Megawatt (MW) - 1,000 kilowatts (kW) - 1 million watts1 Kilowatt-hour (kWh) = 1,000 watt-hours1 Megawatt-hour (MWh) - 1,000 kilowatts-hours1 Gigawatt-hour (GWh) 1,000,000 kilowatt-hours

ABBREVIATIONS AND ACRONYMS

DANIDA Danish International Development AgencyESMAP Energy Sector Management Assistance ProgramGE? Global Environment FacilityGET Global Environment Trust FundGOI Government of IndiaGOTN Government of Tamil NaduIBRD International Bank for Reconstruction and DevelopmentIDA International Development AssociationIDBI Industrial Development Bank of IndiaICB International Competitive BiddingIREDA Indian Renewable Energy Development Agency limitedLCB Local Competitive BiddingMNES Ministry of Non-Conventional Energy SourcesNCE Non-conventional energyNGOs Non-governmental organizationsSEB State Electricity BoardSDC Swiss Development CooperationSGC State Generating CorporationSPV Solar photovoltaicThe Act Electricity Supply Act of 1948TNPL Tamil Nadu Newsprint and Papers Limited

FISCAL YEAR

April 1 - March 31

FOR OMCIAL USE ONLYINDIA

RENEWABLE RESOURCES DEVELOPYENT PROJECT

Credit/Loan sad Project Sumary

Borrowers India, acting by its President;Tamil Nadu Newsprint and Papers Limited (TNPL)

Beneficiarys Indian Renewable Energy Development Agency Limited (IREDA)

Guarantor: IBRD Loans India, acting by its President. The Government of India(GOI) would charge TNPL a guarantee fee of 1 Z per annum on theprincipal amount of the IBRD loan withdrawn and outstanding.

Credit Amount: SDR 81.6 million (US$115 million equivalent)

Loan Amount: US$75 million

Terms: The IDA credit would be on standard terms with a 35 year maturity.The IBRD loan would have a repayment period of twenty years,including five years' grace, at the Bank's standard variableinterest rate.

OnlendingTerms: GOI will onlend the proceeds of the credit to IREDA at an interest

currently set at 12.52 per annum, with a repayment period of 12years, including a grace period of 3 years. The Government wouldbear the foreign exchange risk. IREDA will relend to its clients atinterest rates now ranging from 10 to 15 and with repayment termsranging from 5 to 10 years, according to the types of assetsfinanced. IREDA's lending rates are adjusted from time to time toreflect variations in its cost of funds.

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

IDA 25 90 115IBRD 75 75GET 21 5 26SDC 4 4DANIDA 50 50TNPL 67 67IDBI 28 28IREDA 17 17Developers 68 68

TOTAL 226 224 450

Economic Rate of Return: Above 122 for sall hydros and TNPL project

Staff Appraisal Reports No. 11240-IN

Maps IBRD No. 24281

This document has a restricted distribudon and may be used by recipients only In the perfon, lanceof their official duties. Its contents may not otherwise be disclosed without World Dank authoization.

MEMORANDUM AND RECOMMENDATION OF THE PEMSIDZNTOF THE INTERNATIONAL DEVELOPMENT ASSOCIATION

AND INTERNATIONAL BANRK FOR RECONSTRUCTION AND DEVELOPMENTTO THE EXECUTIVE DIRECTORS

ON A PROPOSED CREDIT AND LOANTO INDIA

FOR A RENEwABLE RESOURCES DEVELOPMENT PROJECT

1. I submit for your approval the following memorandum andrecommendation on a proposed development credit to India for SDR 81.6 million(US$115 million equivalent) and a proposed loan to Tamil Nadu Newsprint andPapers Ltd. (TNPL), with the guarantee of the Government of India, for theequivalent of US$75 million to help finance a Renewable Resources Developmentproject. The credit would be on qtandard IDA terms, with a maturity of 35years. The proceeds of the development credit would be onlent to the IndianRenewable Energy Development Agency Ltd. (IREDA) with a repayment period of 12years, including three years of grace, with interest currently set at 12.5Zper annum. The Government will bear the foreign exchange risk. The loanwould be at the Bank's standard variable interest rate, with & maturity of20 years, including five years of grace. The Government of India would chargea guarantee fee of 1X per annum on the outstan4ing amount of the Bank loan.TNPL will bear the foreign exchange risk.

2. The non-conventional energy components of the project will be co-financed by the Global Environment Trust Fund (GET) in the amount of US$26million, equivalent. The GET will be supplemented by SwF6 million, or US$ 4million equivalent, from the Swiss Development Cooperation (SDC). The DanishGovernment through DANIDA would provide parallel co-financing of US$50 millionequivalent in mixed credits for the windfarm component.

3. Background. Part of GOI's strategy for expanding energy supply isto promote the development of renewable sources and to encourage privateInvestments in this sub-sector. 60I0s renewable energy program is one of thelargest among developing countries with the aim of supplementing conventionalenergy supplies and meeting decentralized energy needs of the rural sector.In more recent years, GOI has stepped up its efforts through public as well asprivate channels to commercialize the deployment and use of the more maturerenewable energy systems particularly for power generation. Recognizing thelimitation of the traditional lending approach of commercial banks andfinancial institutions in venturing into the emerging area of renewableenergy, GOI created IREDA In 1987 as a technology promotions and financing armof the Ministry of Non-Conventional Energy Sources (NNES) with the objectiveof encouraging private entrepreneurs to undertake investments in the sector.A major role of IREDA is to wean the technologies away from heavy governmentgrant subsidies and supply interventions, by providing both energy consumersand producers affordable credit that initially feature concessional terms butwhich progressively approach commercial market rates as the technologies gainwider acceptance. By financing new ventures in alternate energy, IRNDA helpscreate performance track records for the technologies, facilitating theirtransition from novelty to mainstream status. Since its inception, IRNDA hasmanaged a loan portfolio of about 200 small-scale alternative energy projectswhile at the same time maintaining a healthy balance sheet and generatingmodest profits. Demand for IREDA financing now exceeds IREDA's resources; toservice this growing demand, IRNDA's financial, manpower and operationalcapacity would have to be further expanded and strengthened. A key component

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of the project is the Institutional development of IREDA aimed at enhancingthe Agency's effectiveness in carrying out its dual role as a technologypromotions and financing agency.

4. In 1988, a joint UNDPtWorld Bank ESMAP review of GOI's program onnon-conventional energy sources concluded that near-term opportunities forcommercialization existed, among others, in the area of grid-interfaced powergeneration from irrigation-based small hydro, windfarm systems and in selectedsolar photovoltaic (SPV) decentralized applications. Follow-up pre-investmentstudies undertaken with GOI in 1991 and 1992 concluded that irrigation-basedsmall hydros are economically attrastive when compared with power generatedfrom central stations. Wind farms can be competitive if the environmentalcosts of the fossil-based generation they displace are considered. Solar PVlighting and selected applications in non-electrified areas are economicallyviable. The proposed project would support commercialization of thesetecbhologies.

5. Presently, a number of states have issued policies for attractingprivate developmc-tt and operation of alternate energy systems. Currentoperating arrangements allow developers of small hydros and windfarms to wheeland bank power through the state grid enabling the developers to o)perate theschemes on a 'captive plant' basis, augment system supply and reduce theirreliance on diesel engines for standby power. Several on-going projects showthat these arrangements provide a workable framework for such investments.Over time, the entry of mc.e privately-operated power facilities into thenetwork is expected to result in more sophisticated power transferipurchasearrangements based on avoided cost and time-of-use principles. The projectwill provide technical assistance for the introduction of "best practices' inpromoting private power production and co-generation In participating States.

6, In the pulp and paper sector, GOI's policy calls for the use ofalternate raw materials in meeting the growing demand for newsprint in orderto avoid further depletion of the country's scarce forest resources. India'ssearch for alternatives to traditional fibrous materials (wood and bamboo) hasestablished that sugar cane bagasse released from sugar mills is the singlebest resource of fiber to support the sustainable development of the paperindustry in India. The proposed expansion of TNPL, a state-owned enterprise,involves a technology which has been tested and proven to be comerciallyviable under an earlier Bank loan (Loan 2050-IN). Major improvements in papermachine design will allow higher proportions of bagasse pulp to be used,improve production economies and thus help establish the technology into themainstream of India's newsprint industry.

7. Previous Bank Operations. The Bank has made 34 IBRD loans (US$6.7billion) and 18 IDA credits (US$2.3 billion) for power projects in Indiainvolving generation, transmission, distribution and rural electrification.The physical implementation of most projects has proceeded slowly but hasbroadly met expectations. Difficulties were experienced in effectinginstitutional improvements in the power sector due to lack of financialautonomy and poor financial discipline of the publicly owned utilities, aswell as the absence of agreed mechanisms for project cost recovery. Thelessons learned from these projects have had an important bearing on thepreparation of the proposed project, particularly as regards to private sectorparticipation. The proposed project would be the first Bank operation in

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India in the non-conventLonal energy sector. In the pulp and papsr industry,the Bank extended, in 1981, a loan of US$100 million to GOI to help financethe Tamil Nadu Newsprint Project. The Project Completion Report (No. 6517,dated December 1986) underscored the efficient implementation of the projectby TNPL and its good operational results.

8. Rationale for Bank Involvement. The project fits the Bank'slending strategy in power because (a) it is directed towards encouragingprivate sector participation; (b) promotes environmentally sound investments;(c) fosters sound commercial practices in State Electricity Boards (SEDs) andencourages efficient grid operations necessary for attracting privateinvestments; and (d) by virtue of their decentralized locations, the projectinvestments would boost power supply, reduce energy losses and provide much-needed voltage support to the distribution systems. The project is in linewith the Bank's lending strategy towards the industrial sector in India whichpromotes rationalization of public enterprises particularly throughprivatization. By enhancing the conmmercial viability of the bagasse-newsprinttechnology, the project would attract private sector investments and enablethe State Government of Tamil Nadu to progressively divest its shares of stockin TNPL. The project involves an agreed reduction of government-ownedshareholdings in TNPL to 26Z in favor of the private sector. The proposedproject is in line with the country assistance strategy in India which callsfor financing of investment activities. that help improve sectoral policyframework and that support progress in the Bank's areas of special operationalemphasis on the environment, institutional development and private sectordevelopment.

9. The nan-conventional energy component of the project has beenselected as the F demonstration project for grid-interfaced windfarms andfor solar PV rural lighting and other village applications in the Asia region.The project supports GNP's objectives on net reduction of global warmingemissions and was selected based on the project's demonstration value andpotential for replicability and sustainability. The wind farm component iseatimated to yield a relatively low cost of displacing carbon estimated atless than $30 per ton of carbon displaced. The SPV component would initiallyinvolve a carbon displacement cost of $84 but which is expected to decline to$29 per ton as the program expands.

10. Prolect Obiectives. The main objectives of the project are to (a)promote commercialization of renewable resources technologies by (i)strengthening IREDA's capacity to promote and finance private investments inalternate energy, and (ii) expanding bagasse-newsprint operation to morecommercially attractive levels of production; (b) create marketing andfinancing mechanisms for sale and delivery of alternate energy systems basedon commercial principles; (c) strengthen the institutional framework forencouraging entry of private sector investments in small-scale powergeneration; and (d) promote environmentally sound investments to preventdepletion of India's limited forest resources and to reduce the energysector's dependence on fossil fuels.

11. Proiect Description. The project includes: (a) a line of creditwith the IREDA to finance private sector d .velopment of imall hydros,windfarms, and solar PV systems; (b) the expan3ion of TNPL's bagasse-basedpapermill; and (c) technical assistance. Over a period of six years, IRIDA

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would rolend to developers proceeds from the IDA/GET funds for (i)conatruction of 40 to 50 irrigation-based small hydro schemes with a totalcapacity of about 100 Mg, (ii) installation of some 85 MK of windfarms, and(iii) the re-financing, sale and delivery of about 2.5 to 3 MWp equivalentcapacity of solar photovoltaic system for efficient lighting, water pumpingand other selected applications. The Bank loan to TNPL would double thepapermill's production capacity to 100,000 tona per annum (tpa) of newsprintand 80,000 tpa of writing paper. The technical assistance package wouldconsist of three categories, namely; (i' institutional development of IRIDA;(ii) establishment of a comprehensive program evaluation system in IREDA; and(iii) studies and training on promoting sustainable interchange of powersupply between the stste grids and small-scale private power producers/co-generators.

12. Prolect ImRlementation. IREDA will manage the energy components ofthe project, with the assistance of qualified consultants. It will administerthe lines of credit and manage the technical assistance activities. IRaDA'soperations would be conducted based on the Operational Policy Statement (OPS)agreed with the Bank. The OPS embodies financial management policiesconsistent with those required by the Bank for financial intermediary lendingand will serve as the key element in the Bank's agreement with IREDA.TNPL will be responsible for lmplementing the papermill expansion componentand wmil be assisted by its engineering consultants.

1S. The total project cost is estimated at US$422 million equivalent,with a foreign eachange component of US$217 million equivalent (representing512 of project cost) and taxes and duties estimated at about US$50 millionequivalent. The total financing required, including interest duringconstruction, is US$450 million, of which IBRD would finance US$75 million andIDA US$115 million, equivalent (or 422). A breakdown of costs and thefinancing plan are showA in Schedule A. Amounts and methods of procurementand of disbursements, and the disbursement schedule are shown in Schedule B.To enable timely implementation of the project, US$7.5 million of projectexpenditures associated with the TNPL papermill expansion would beretroactively financed, which is equivalent to 10 of the loan amount to TNPL.These would finance initial payments for the main paper machine and someancillary equipment for which tenders have already been issued and openedbased on Bank-approved procurement procedures. A timetable of key projectprocessing events and the status of Bank Group operations in India are givenin Schedules C and D, respectively. A map is also attached. The StaffAppraisal Report, No. 11240-IN, dated November 30, 1992, is being distributedseparately.

14. Agreed Actions. During negotiations, IREDA agreedt (a) toimplement a satisfactory organizational structure and increase its staffingbased on an agreed timetable; (b) conduct their business in accordance withthe agreed Operational Policy Statement (OPS), and not to modify it in amaterial manner without prior consultation with the Bank; (c) retain projectmanAgement consultants; (d) finance sub-projects from proceeds from the Creditand Trust Fund based on the agreed criteria; (e) conduct a mid-term review ofthe project and to submit findings to the Bank on or before March 31, 1995.In addition, IREDA agreed to review with the Bank (i) on or before July 1,1993,-the interest rate for its PV loans based on the findings of the PVmarket survey, and (ii) on or before May 1, 1995 the interest rates for small

hydro aud windfarms based on the findings of the mid-term review of the, project and adjust them clqser to commercial rates as appropriate.

15. TNPL agreed to: (a) take steps to bring the Government of TamilNadu's shareholding in T?PL to a level of not more than 262 by one year aftercommissioning of the plant expansions (b) implement tt-e EnvironmentalManagement Plan (EMO) agreed with the Bank; (c) complete the relocation andresettlement of the 86 affected families from the village of Kurukkapalayam byJune 30, 1993, and implement the benefit packages designed for these familiesas well as the host community; (d) undertake to review TNPL's financialperformance with the Bank before declaring or paying dividends during theproject implementation period; and (f) maintain a debt service coverage ratioof not less than 1.3.

16. The following conditions of effectiveness were agreed upon for the(a) Development Credit and GET Fund Agreements: Execution of a Subsidiary LoanAgreement between GOI and IREn for relanding of the proceeds of the Credit;and (b) IBRD Loan to TNPL: (i) Creation of an equitable mortgage in a formsatisfactory to IBRD; and (ii) Execution of a Power of Attorney in favor ofIBRD to enable IBRD at its discretion to convert the mortgage to an Englishform.

17. Environmental and Resettlement Aspects. The project's energycomponents do not present any significant adverse effects on the environmentand are instead expected to result in improved air quality by reducingreliance on fossil-based energy systems such as coal thermal plants, dieselengines and kerosene lanterns. Under !ts existing procedure, IREDA requiresthat projects to be financed have the necessary environmental clearances.IRNDA's technical staff vold review environmental issues related to projectsto be financed by IDAIGET and advise borrowers on the preparation of therequisite environmental assessments. With respect to the papermill expansioncomponent, an environmental Impact assessment study (EIAS) as well as a safetyaudit of the chemical storage and handling have been completed. Mitigatoryactions agreed to be taken by TNPL would allow the plant to meet Indianstandards and Bank guidelines for the pulp and paper industry. The millexpansion does not involve any new displacement of population as adequatespace is already available in the exisiing plant site for installation of thenew machinery and equipment. However, operation of TNPL's existiuZ plant hasadversely affected 86 families living in the adjacent village ofKurukkapalayam due to seepage from the plant's effluent lagoon and settling ofcoal dust from the plant. Under its agreed action plan, TNPL would completethe relocation and resettlement of the affected families by June 30, 1993 andcorrective actions would be taken to eliminate the seepage, coal dustpollution, odor nuisance from organic sulfur compounds and to reduce noise.

18. Prolect Benefits. Main benefits of the project ares (a)demonstration on a commercial scale of renewable resource systems that couldlead to their replication in other parts of India and the world; (b)mobilization of private investment in the energy sector and newsprintindustry; (c) reduced reliance on fossil fuels and forest resources and thushelp improve the environment; (d) increased availability and improvedreliability of power supply to help meet industrial and decentralized ruralenergy needs; and (e) foreign exchange savings through efficient domesticnewsprint production in India.

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19. Risks. There are several project risks. First, there are therisks associated with monitoring numerous work sites; these are beingcountered by involving the private sector as investors and by setting up cmonitoring and evaluation team at IREDA with back-up consultancy support tomonitor progress of the works. Second, there are r!sks that the institutionaland energy-pricing environment may prevent the solar PV systems from becomingaffordable. These risks will bs managed by requliring that adequate commercial%rrangements for supply and after-sales service are in place prior to loanapproval by IRUDA and by firmly establishing, through market surveys, theviability of product demand and acceptability within the context of the users'environment. Third, operation of the new energy systems may not besustainable if the deployed systems perform poorly and capital and operatingcosts are higher than expected. These risks will be minimise: by limitingfinancing to those technologies for which performance reliability and costshave been sufficiently established through actual operating experience inIndia and in other countries. On TNPL's papermill expansion, thete are nosignificant technical risks anticipated since the basic technology has alreadybeen tested and prcven during the past six years under TNPL's first project.Potential market risk due to import competition would be managed by TNPL bymaintaining a competitive cost structure, quality control and effectivemarketing.

20. Recomendation. I am satisfied that the proposed credit and loancowply with the Articles of Agreement of the Association and the Bank andrecommend that the Executive Directors approve them.

Lewis T. PrestonPresident

Attachments

Washington, D.C.November 30, 1992

Schedule AINDIA

RENEWABLE RESOURCES DEVMLOPMENT PROJECT

Estimated Costs and Financina Plan(US$ million)

Estimated Cost:Local Foreign Total---------(US$ million)-------

A. Small Hydro Schemes 16 51 67

B. Ron-conventional EnergySystems Component 77 63 140Wind Farms 50 52 102Solar PV Systems 27 12 39

C. TNPL Bagasse-basedPapermill Expansion 66 66 132Plant Cost 64 66 130Pre-operating Costs 2 0 2

D. Technical Assistaace 1 3 4

TOTAL BASELINE COSTS 160 184 344Physical Contingencies 16 18 34Price Contingencies 29 15 44

TOTAL PROJECT COSTS 205 217 422

TNPL Working Capital 2 0 2

Interest DuringConstruction (IDC) 19 7 26

TOTAL FIMANCINA REQUIRED 226 224 450

Pinanctnr Plant

Source

IBRD 75 75 16.6TNPL 67 67 14.9IDBI 28 28 6.2IDA 25 90 115 25.6GE? 21 5 26 5.8SDC 4 4 0.9DANIDA SO 50 11.1IREDA 17 17 3.8Developers 68 68 15.1

Total 226 224 450 100.0

Schedule BPage 1 of 2

INDIA

RENEWABLE RESOURCES DEVELOPMENT PROJECT

Summary of Proposed Procurement Arrangements(US$ million)

CommercialComponent ICB LCB Practices Others Total

Small-hydroEquipment 25 20 23 68

(25) (20) (23) (68)Civil works 15 15

(2) (2)Services 2 2

Sub-total 25 20 40 85(25) (20) (25) (70)

WindfarmsEquipment 15 10 28 50 103

(15) (3) (10) (28)Civil vorks 10 10Services 4 4Land 4 4

Sub-total 15 10 38 58 121(15) (3) (10) (28)

Solar PW 7 35 10 52(7) (26) (7) (40)

TNPL PapermillEquipment 75 68 143

(75) (75)Civil works 7 7Erection 4 4Engineeri"Ag 2 2Others 2 2

Sub-total 75 81 2 158(75) (75)

Technical AssistanceIREDA 1 3 2 6

(1) (2) (3)

TOTAL 123 111 116 72 422(123) (23) (63) (7) (216)

a/ Contract values include contiugencies, taxes, and duties.Brackets reflect IDA, Bank and GET financed portions.

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Schedule BPage 2 of 2

Disbursements

Category Amount Percentage Financing(US$)

(1) Equipment, materials 208,000,000 100? of foreign exchangeand supervisory services expenditures and 1002 of

local expenditures (ex-factory cost ofmanufactured in India)for equipment andmaterials; 802 of localexpenditures for otheritems procured locally

(2) Consultants' service 3,000,000 1002 of expendituresand training

(3) Unalloc3ted 5,000,000

TOTAL 216,000,000

Estimated Disbursements (in USS Million)

Rank Group Fiscal Year93 94 95 96 97 98 99

Annual 23 55 51 47 24 10 6Cumulative 23 78 129 176 200 210 216

Cumulativel 11 36 60 81 93 97 100

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Schedule C

INDIA

RNEWABLE RESOURCES DEVELOPMENT PROJECT

Timetable of Key Proiect Processing Events

(a) Time taken to prepare the project: 16 months

(b) Prepared bys MNES, IREDA, TNPL and Bank

(c) First Bank mission: June 1991

(d) Appraisal mission departure: June 1992

(e) Negotiations: November 1992

(f) Planned date of effectiveness: February 1993

(g) List of relevant PCRs and PPARs:

CreditlLoan No. Proiect PCR Date PCR No.

Ln. 2050-IN Tamil Nadu Newsprint Project December 1986 6517

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PAGE 1 of S

THE STATUS OF SANK CROUP OPERATIONS IN INDSA

A. STATEMENT OF BANK LOANS AND IDA CREDIT

(As of September 30, 1M)

US, million(net of cancellations)

Loan or Flscal Year* Credit No. of Approval Purpose 3RD SO I/ Undtburaed 2/

90 Loons/ 6367.0169 re dits fully dlsbursed/cancolled - 11899.2 -

1850-IN 193 Upper Indravati Hydr6 Power - 170.00 20.481369-TN 1988 Calcutta Urban Developmnt III - 91.46 3^.232296-IN 1908 Himalayan Watershed Management 10.20 - 8.891424-IN 1984 Ralnfed Areas Watershed Dow. - 25.12 17.961428-IN 1964 Population III - 70.00 1.111454-IN 1984 Tamil Nadu Water Supply - 30.50 20.7614U3-IN 1984 Upper Cangs Irrigation - 106.43 47.671496-IN 1904 Gujarat Medium Srrlgation - 16.30. 45.041502-IN 1984 National Cooperative Oevelopment Corpora - 186.60 0.012807-ZN 1984 Nhava Shove Port 150.00 - 19.262393-IN 1984 Dudhtchua Coal 109.00 16.962403-IN 1984 Canbay Basin Petroleum 213.50 - 26.072416-IN 1984 Madhya Pradesh Fertilizer 167.10 - 0.942416-IN 10s4 Indira Sarovar Hydroelectric 17.43 - 9.562417-IN 1084 Railways Electrifteatton 2?9.20 - 19.852442-IN 1904 Fsrskks II Thermal Power 276.80 - 56.802452-SN 1084 Fourth Trombay Thermal Power 135.40 - S.9"SF-12-IN 1984 Tanil Nadu Water Supply - $8.60 26.23SF-16-IN 1984 Perlyar Valgal 11 Irrigation - 17.60 10.84SF-20-IN 1984 Indira Sarovar Hydroelectere - 13.84 18.141514-IN 10S Kerala Social Forestry - 27.12 4.141623-IN 1986 National Agric. Extension I 32.30 6.501644-IN 10S Bombay Urban Development - 100.02 89.241553-IN 1985 Nrmada (Gujarat) Canal - 145.18 0.0915609-IN 1985 Second National Agricultural Ext. - 45.89 19.671611-IN 1985 National Social Forestry - 154.00 21.371613-IN 1086 Indira Sarover Hydroelectric - 13.20 17.002497-IN 1985 Namards (Gujarat) Dam and Power 200.00 - 200.002498-DN 18S dharla Coking Coal 57.70 - 5.082534-TN 1985 National Highways 163.00 - 80.992644-ZN 1985 Chandrapur Therm l Power 280.00 - 94.06265U-IN 1065 Rihand Power Transmission 202.00 - 8.812682-IN 1986 Kerlas Power 1?6.00 - 130.781619-IN 1906 West Bengal Minor Irrigation - 09.17 67.871B21-ZN 10s8 Maharashtra Composite Irrigation - 160.00 182.701622-IN 1986 Kerala Water Supply and Sanitation - 21.80 8.071823-IN 1986 West Bengal Population - 46.06 16.131831-2N 186 National Agricultural Research II - 59.88 87.131643-IN 1086 GuJarat Urban - 50.34 30.161665-IN 1086 Andhra Pradesh II Irrigation - 140.00 127.002629-IN 1086 Industrial Export Dev. Finance 90.00 - 0.2026830-IN 1986 ICICI-Indus. Exp. Dev. Finance 160.00 - 5.182660-IN 1986 Cement Industry 165.00 - 68.762061-IN 1986 ICICI - Cement Industry 85.00 - 13.442662-IN 1986 Andhra Pradesh II Irrigation 41.00 - 41.002674-IN 1086 Combined Cycle Power 486.00 - 28.49

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PACE 2 of 6

US8 Million(not of cancellations)

Loan or Flca 10 ID 1/-------- -nlbra -- 2-/~~----Credit No. of Approval Purpose l8R IDA I/ Undtsbursed 2

2730-IN 1988 Cooperativ. Fertilizer 118.26 - 20.701737-IN 1987 Blhar Tubewells - 22.29 12.601760WZN 1987 Somby Water Supply a Sewrg III - 14S.00 96.431764-IN 1987 National Agric. Extension III - 70.10 41.731757-IN 1907 Oujarat Rurnl Roads 119.60 97.311770-IN 1987 National Water Management - 114.00 94.701780-ZN 1987 Utter Pradosh Urban Development - 120.95 77.812769-ZN 1987 Bombay Water Supply A Sewerago III 40.00 - 40.00278S-IN 1987 Oil India Petroleum 140.00 - 88.862798-IN 1987 Coal Mining A Quality Improvement 840.00 - 117.602813-IN 1907 Telocommunications IX 184.50 - 25.832827-IN 1907 Karnataka Power 260.00 - 192.032844-IN 1987 National Capital Power 425.00 - 179.682845-ZN 1907 Talcher Thermal 875.00 - 274.282848-SN 1987 madras Water Supply 5t.00 - 86.721859-IN 1988 National Dairy I - 160.00 39.651923-IN 1988 Tamil Nadu Urban DOv. - 269.69 182.091931-IN 1988 Bombay & Madras Population - 57.00 18.302893-IN 1908 National Dairy II 200.00 - 200.002928-IN 1988 Indus. Fin. A Tech. Asst. 380.00 - 61.092936-IN 1908 Railway Modernization III 890.00 - 209.4U2938-ZN 1988 Karnataka Power TT 220.00 - 183.261962-IN 1989 National Seeds III - 150.00 108.441959-TN 1909 States Roads - 80.00 48.912008-SN 1989 Vocatlonal Training - 211.02 181.882010-IN 190 Upper Krishna Irrigation IT - 160.00 124.782022-IN 1989 National Sericulture - 147.00 122.712057-IN 1909 Nat'l. FamIly Welfare Trog. - 113.30 98.932994-IN 1909 States Roads 170.00 - 170.003024-IN 1909 Nathp Jhakri Power 485.00 - 448.293044-ZN 1989 Petroleum Transport 340.00 - 805.003050-ZN 1989 Upper Krishna Irigation ST 85.00 - 85.0080S8-IN 1989 Export Development 120.00 - 64.248059-ZN 1989 ICICI - Export Development 175.00 - 92.658093-ZN 1909 Electronics Industry Dov. 8.00 - 7.503094-ZN 1989 ICICI - Electronics Ind. Dov. 101.00 - 45.023095-IN 1989 1DBT - Electronics Ind. O.v. 101.00 - 76.063096-IN 1989 Maharashtra Power 384.00 - 828.962004-IN 1990 Industrlal Technology Development - 55.00 SS.002076-ZN 1990 Punjab Irrigation/Drainag - 145.28 142.482100-ZN 1990 Watershed Development (Hills) - 75.00 76.952115-ZN 1990 Hydorabad Water Supply 79.90 71.292130-ZN 1990 Technician Education I - 210.74 198.042131-IN 1990 Watershed Development (Ptlans) - 65.00 68.272133-ZN 1990 Population Training VII 81.92 79.6221S8-DN 199O TamlI Nadu Integrated Nutritton It - 88.15 87.118119-ZN 1990 Industrial Technology Development 145.00 - 100.298196-IN 1990 Cemnt Industry Retructurlng 800.00 - *68.088237-IN 1990 Northern Region Transmission 485.00 - 4S8.898289-ZN 1990 Private Power Utilittos I (TEC) 98.00 - 84.092178-lN 1691 iCDS I (Orlesa A Andhra Pradesb) - 90.00 90.582170-IN 1901 A.P. Cyclone Emergency Reconstruction - 170.00 8".082215-ZN 1991 Tamil Nadu Agriecultural Doevlopment - 92.80 85.682223-IN 1991 Technician Education tI - 307.10 291.782234-IN 1991 Maharashtra Rural Water Supply - 109.90 103.272241-DN 1991 Dam Safety - 1l0.00 129.482262-IN 1991 Industrial Pollution Control - 31.60 81.883258-IN 1991 Petrochemicals It 12.00 - 11.003269-ZN 191 Petrochemicals U1 238.00 - 159.688260-IN 1991 A.P. Cyclone Emergency Reconstruction 40.00 - 40.008300-IN 1991 Tamil Nadu Agricultural Devolopment 20.00 - 20.003325-ZN 1991 Dam Safety 23.00 - 28.003334-IN 1991 Industrial Pollution Control 124.00 - 117.98

- 13 -

SCHEDULE D

PACE 3 of S

USS MliTonLeon or Fiscal Year (net of coneilations)Credit No. of Approval Purpose 19RD IDA 1/ Undlsbursed 2/

SW44-IN 1991 Private Powor Utlitiels it (6515) 200.00 - 162.06$334-1N 1991 Gas Flaring Reduction 460.00 - 343.642300-IN 1992 Child Survival and Stfe Motherhood - 214.60 202.272328-IN 19m Maharshtra Forestry - 124.00 122.802329-1N 1992 Shrlip and Fith Culture - 36.00 67.162341-IN 19m West Bengal Forestry - 4.00 J3.4023U0-N 1992 National AIDS Control - 64.00 80.6Jgm08-IN 1m Scond National Highway - 153.00 157.622394-IN 192 Family Wielfare (Urban Slums) * - 79.00 68.733421-IN 19m Structural Adjustment 260.00 - 5.193436-IN 1m Power Utilities Efficiency 266.00 - 250.98470-ZN 19m Second Natitonal Htghrwy - 153.00 163.004496-IN 192m Second Maharashtra Power * 360.00 - 360.002409-IN 1993 Rubber a - 92.00 96.30

Tota l 16095.1 18408.7 11160.75of which has been repald 133.6 886.6

Total now outatanding 17961.3 17522.1Amount Sold 133.6of which has been repald 133.8

Total now held by Bank and IDA S/ 17961.34 17522.12

Total undisbursod (excluding *) 6066.6 4576.2

1/ IDA Credit amounts for SDR-denominated Credits are expressed In terms of their US dollarequivalents, as established at the time of Credit negotiations and as subsquontlypresented to the Board.

2/ Undisbured amounts for SOR-donominated IDA Credits are derived *o the undiebursed balanceexpressed In SCR equlvlents (in turn derived as tho difference between the original principalexpreed in SDRs (based on the exchange rate as established at tho time of Credit negotiations)and the cumulative disbursements converted to 5 equivnts at the ochange rates prevailingat the respective dates of disbursments los cancel lai8on oxpressed In SOR equivalents convertedto US dollar equivalents et the SDR/US dollar exchange rate In effect on June 30, 1992.

3/ Prior teO xchange adjustment.

e Not yet effective.

- 14 - SCHEDULE 0

PAGE 4 OF 6

D. STATEMENT OF IFC INVESTMENTS

(As of September 0, 1992)

Amount (US$ millon)

Fiscal Year Company Loon Equity Total

1959 Republic Forgo Company Ltd. 1.50 -- 1.601969-92 Kirloskar Oil Engines Ltd. 0.86 -- 0.851960 Assam Sillimanite Ltd. 1.36 1.361961 K.S.8. Pumps Ltd. 0.21 - 0.211983-68 Precision Bearings India Ltd. 0.65 0.38 1.031964 Fort Gloster Industries Ltd. 0.81 0.40 1.211964 Lakshmi Machin Works Ltd. 0.96 0.88 1.321964-75-79/90 Mahindra Ugine Steel Co. Ltd. 11.81 2.84 14.661967 Indian Explosives Ltd. 8.60 2.86 11.461967 Jayshree Chemicals Ltd. 1.05 0.10 1.151969-70 Zuarl Agro-Chemicals Ltd. 16.15 8.76 18.911977-87 Escorts Limited 16.66 -- 16.551978-67/91 Housing Development Finance Corp. 104.00 2.10 106.101980/82/87/89 Deepak Fertilizer and Petrochemicals Corporation Ltd. 7.60 4.23 11.731981-82 Nagar3una Coated Tubes Ltd. 1.50 0.24 1.741981-82 Nagarjuna Steols Limited 2.88 0.24 8.121981-86-89 Tats Iron and Steel Company Ltd. 72.84 24.81 97.151981-90 Mahindra A Mahindra Ltd. 28.19 8.97 87.161982 Ashok Leyland L'mited 28.00 -- 28.001982 Coromandel Fertilizers Limited 16.88 -- 15.881982 The Bombay Dyeing and Manufacturing Co. Ltd. 18.80 -- 18.801982-86-87/91 NagarJuna Signod. Limited -- 0.41 0.411982-87 ITW Signode 2.99 -- 2.991982-87 The Indian Rayon Corp. Ltd. 14.57 -- 14.571983 Bharat Forge Company Ltd. 16.90 - 15.901984-88 The Owallor Rayon Silk Manufacturing (Weaving) Co. Ltd. 16.95 - 15.951985 Bajaj Auto Ltd. 23.98 -- 28.981985 Modl Cement 13.06 -- 18.061985-88/90-91 India Lease Development Ltd. 8.50 0.78 9.281985/91 Bihar Sponge 16.24 0.88 16.921986 8ajaJ Tempo Limited 80.54 -- 80.541988 India Equipment Leasing Ltd. 2.50 0.30 2.801986 Larsen and Tosibro Ltd. 21.78 -- 21.781988-87 The Great Eastern Shlpping Company Ltd. 8.00 10.68 18.661987 Export-Import Bank of India 14.34 -- 14.341987 Gu3arat Fuslon Class Ltd. 7.62 1.70 9.221987 Gujarat Narmada Valley Fertilizer 8S.07 - 88.071987 Hero Honda Motors Ltd. 7.74 -- 7.741987 Hindustan Motors Ltd. 89.26 - 89.261987 The Gujarat Rural Housing Finance Corp. - 0.19 0.191987 Wimco Limited 4.70 - 4.701987-89/90 Titan Watches Limited 22.02 0.56 22.581988 Invel Transmissions Ltd. - 1.07 1.071989 Ahmedabad Electricity Company, Ltd. 20.883 20.831989 WTI Advanced Technology -- 0.20 0.201989-90 Keltron Telephone Instruments, Ltd. -- 0.58 0.581989-92 Gujarat State Fertilizer 41.20 - 41.201990 JS8 India Securities Firms -- 0.37 0.371990 UCAL Fuel Systems Ltd. -- 0.63 0.831990-91 Tate Electric 111.88 -- 111.881991 ATIC Industries Export Finance 0.28 - 0.281991 Bombay Electric 68.00 c 88.001991 CESC Ltd. 22.85 - 22.851991 Export Finance - AFDC 0.35 - 0.351991 Herdille Oxides and Electronics Ltd. -- 0.29 0.291991 Indust. Credit A Investment Corp. of India -- 26.80 28.601991 Infrastructure Leasing A Financial Services 15.00 1.81 16.811991 TDICI Development Finance Companies -- 2.19 2.191991 Triveni Pool Intairdril Ltd. (TPIL) -- 0.93 0.931991 Varun Transport, Storage & Communteations 17.04 2.88 19.42

- 15 - SCHEDULE D

PACE 6 OF 6

Amount (USS mitllon)

Fiscal Year Compony Loan Equity Total

1992 Arvind Mills 9.00 7.81 16.811992 Block Ka-OS-IV - 8.20 8.201992 INDUS VCF - 1.17 1.171992 Kotak Mahindra 0.80 - 0.801992 Nlpon Denro 40.00 5.77 46.771992 SKF Bearings 11.60 - 11.50

TOTAL GROSS COMMITMENTS 1002.92 126.65 1129.47

LJSes Cancellation, Terminations, ExchangeAdjustments, Repayments, Writooff and Sales 441.31 28.81 470.12

Now Hold by lFC 561.61 97.74 659.36

Un<dlebursed 209.07 31.84 240.91_ m

IBRD 2428

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