DJv~-. -S II-/VDocument of

The World Bank

FOR OMCIAL USE ONLY

Report No. P-5536-INleport Nu. H- Th.sfX IN]FL JIAK / X~ AI itb .' 7 ';4TV?

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$450 MILLION

(WITH THE GUARANTEE OF GOVERNNENT OF INDIA)

TO THE

OIL AND NATURAL GAS COMMISSION (ONGC)

FOR A

GAS FLARING REDUCTION PROJECT

IN

INDIA

JUNE 5, 1991

This document has a restricted distribution and may be used by recipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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CURRENCY EQUIVALENTS(As of January 15, 1991)

Currency unit = Rupees (Rs)R 1.00 = US$ 0.051 (approx.)US $1.00 = Rs 19.43

WEIGHTS AND MEASURES

1 Million cubic meters of gasper day (MMCMD) 37 million cubic feet of gas

= 6,500 barrels of oil1 Btu (British thermal unit) = 0.252 kilocalories (Kcal)1 Ton of oil equivalent (toe) = 10 million kilocalories

ABBREVIATIONS AND ACRONYMS

ADB - Asian Development BankHBJ - Hazira-Bijaipur-Jagdishpur gas pipelineGAIL - Gas Authority of India Ltd.GOI - Government of IndiaJ-EXIM - Export-Import Bank of Japankm - kilometerLICB - limited international competitive biddingLPG - liquefied petroleum gasMMCMD - million cubic meters per dayONGC - Oil and Natural Gas Commission

FISCAL YEAR

April 1 - March 31

FOR OFFICLUL USE ONLY

INDIA

GAS FLARTNG REDUCTION PROJECT

Loan and Project Summary

Borrower: Oil and Natural Gas Commission (ONGC)

Guarantor: India, Acting by its President. TheGovernment of India (GOI) would charge aguarantee fee of IS p.a. on the outstandingamount of the Bank Loan.

Amounts US$450 million equivalent

Terms: 20 years, including five years of grace, atthe Bank's standard variable interest rate.

Financing Plan:Local Foreign Total… US$ million ̂

World Bank 450.0 450.0Asian DevelopmentBank 300.0 300.0

Export-ImportBank of Japan a/ 350.0 350.0

Export/suppliercredits 745.6 745.6

ONGC 998.1 340.6 1,338.7

Total 998.1 2,186.2 3,184.3-t === _s=

a/ GOI's request for financing is currentlyunder study by J-EXIM.

Economic Rate of Return: 30X

Staff Appraisal Report: Report No. 9305-IN

!La2 s No. 22892

This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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

TO THE EXECUTIVE DIRECTORSON A PROPOSED LOAN

TO INDIAFOR A GAS FLARING REDUCTION PROJECT

1. I submit, for your approval, the following memorandum andrecommendation on a proposed loan to the Oil and Natural Gas Commission(ONGC) (with the guarantee of the Government of India) for the equivalent ofUS$450 million to help finance a project to eliminate gas flaring in theBombay High oil field. The loan would be at the Bank's standard variableinterest rate with a maturity of 20 years including five years of grace. TheGovernment of India (GOI) would charge ONGC a guarantee fee of 1? per annum onthe outstanding amount of the Bank Loan.

Sector Background

2. Energy remains critical for the success of the Government's effortsto accelerate economic growth. The faster growth of the Indian economy duringthe 1980s has strained the capacities of India's oil and gas industry, thecoal industry and the power sector to meet the country's energy needs. Inspite of massive investments in the development of indigenous energyresources, energy demand continues to outstrip supply. In the years ahead theGovernment will again face the difficult choice between a growing dependenceon oil imports and slower economic growth.

3. Output from India's largest oil field, the Bombay High, has nowreached a plateau. Its output, which accounts for 70Z of indigenous oilproduction, is likely to decline sharply in the coming years, unless oilproduction targets are brought in line with sound oil field managementpractices. In recent years ONGC has been under pressure from the Governmentto maximize oil output in order to keep oil imports at manageable levels.Delays in the implementation of programs that would have maintained reservoirpressure have led to a sharp increase in the production of associated gas anda reduction of the amount of oil that will be ultimately recovered from thefield. Lack of infrastructure facilities (compressor stations, pipelines,etc.) have left ONGC with no choice but to flare an increasing share ofassociated gas production; at present, about 12 million cubic meters of gasare flared each day. To eliminate the flaring of gas and slow the decline inoil production, ONGC needs to install facilities for pressure maintenance andgas recovery and increase the capacity of the existing gas evacuation system.The primary objective of the proposed project is to assist ONGC in theseefforts.

Lessons Learned from Previous Bank Operations

4. Over the past decade the Government has increasingly recognized theimportance of natural gas as an energy source. It has given priority to thedevelopment of gas fields and adopted a gas use policy expanding the use ofgas beyond the production of fertilizer, petrochemicals and liquifiedpetroleum gas (LPG) to power generation and industrial uses. The Bank hassupported these initiatives with a series of projects including thedevelopment of the South Bassein and Gandhar gas fields, the review of theHazira-Bijaipur-Jagdishpur gas pipeline, and the construction of fertilizerand combined-cycle power plants along this pipeline. Experience with these

projects has shown a critical need to co-ordinate the development of gasfields and gas markets. The excessive flaring of gas in the Bombay High oilfield is largely the result of delays in the development of gas markets andlack of investment in pipelines and other infrastructure facilities. Toensure that gas will be used efficiently under the proposed project, themarketing plans for gas have been reviewed with the Gas Authority of IndiaLtd. (GAIL), fallback plans for the allocations of gas have been drawn up incase some users are unable to utilize their gas allocations and a body willbe set up in the Department of Petroleum and Natural Gas that will monitorprogress in the implementation of projects to increase gas supplies as well asprojects to utilize gas.

Rationale for Bank Involvement

5. The main objective of the Bank's strategy in the Indian oil and gassector remains to support the Government's efforts to reduce India's oil gapand encourage the development and efficient use of gas resources. We intendto achieve this through support for (i) improvements in the efficiency of oiland gas exploration and development, in particular the elimination of gasflaring; (ii) the development of gas markets; (iii) more extensive involvementof international oil companies in these activities; and (iv) efforts to secureexternal financing. The proposed project fits into this strategy. The Bank'ssupport for this project will greatly facilitate ONGC's efforts to mobilizeexport and suppliers' credits. In addition, the project provides the Bankwith an opportunity to work closely with ONGC in reducing the risks ofoffshore operations to the environment and in enhancing the safety of theseoperations for ONGC'8 staff.

Project Objectives

6. The project has four objectivess (a) to eliminate the flaring ofassociated gas in the Bombay High oil field and improve the management of theBombay High reservoir in order to arrest the decline of oil production andoptimize the ultimate recovery of hydrocarbons; (b) to reduce energy shortagesand improve the efficiency of energy use in India's Western Region; (c) topromote a greater involvement of the private sector in the oil and gasindustry in India, and (d) to support ONGC's efforts to improve the safety ofits offshore operations and reduce the risks to the environment from theseoperations.

Proiect Description

7. The proposed project comprises: (a) construction of two processplatforms as well as modifications on existing platforms; (b) construction ofthree submarine gas pipelines; (c) expansion of the existing Hazira gasterminal; (d) engineering, project management and other implementationservices; (e) reservoir performance and management studies; (f) package ofmeasures required to bring the managemevt of the reservoirs of the Bombay Highoil field in line with industry standards and practices and (g) measures tomitigate environmental risks and enhance the safety of ONGC's offshoreoperations.

8. The proposed project would be carried out by ONGC, over a five yearperiod. The project cost is estimated at US$2,878 million equivalent, with aforeign exchange component of US$1,982 million equivalent (691) and taxes and

- 3 -

duties estimated at about US$374 million equivalent. The total financingrequired, including interest during construction, is US$3,184 million, ofwhich the Bank would finance US$450 million equivalent (20.6Z of the foreignexchange and 14.2S of the total). Retroactive financing of up to US$45million will be provided for eligible expenditures after October 31, 1990. Abreakdown of costs and the financing plan are shown in Schedule A. Amountsand methods of procurement and of disbursements, and the disbursement scheduleare shown in Schedule B. A timetable of key processing events and the statusof Bank Group operations in India are given in Schedule C and D, respectively.The Staff Appraisal Report, No.9305-IN dated, May 31, 1991, is beingdistributed separately. A map (No. IBRD 22892) is also attached.

Agreed Actions

9. Agreement has been reached with the Government and ONGC on thefollowing major actionss

(a) GOI will implement a gas pricing policy which links domestic gasprices to the import parity of fuel oil and discuss revisions ofthis pricing policy by December 31, 1993, with the Bank;

(b) GOI will establish a body in the Department of Petroleum andNatural Gas to monitor the implementation of oil and gas projectson a quarterly basis and revise gas production plans accordingly;

(c) GOI will ensure that the allocation of gas to specific end-users isguided by economic efficiency considerations;

Id) ONGC will annually review its investment program with the Bank aswell as the implications of this program on ONGC's financialposition;

(e) ONGC will maintain its current ratio at 1.2 times or higher, itsdebt-service coverage ratio at 1.5 times or higher, and itsdebt-to-equity ratio at no more than 1t5;

(f) ONGC will retain the services of a financial advisor for mobilisingforeign exchange resources;

(g) ONGC will carry out a safety audit for its entire offshoreoperations, discuss the results with the Bank and implement therecommendations of the audit;

(h) ONGC will carry out a safety engineering study of existingplatforms linked to facilities that will be constructed under theproject, discuss the results with the Bank and implement therecommendations of the study; and

Ci) ONGC will carry out a review of its procurement and projectimplementation organization, discuss the results of this reviewwith the Bank and implement its recommendations.

10. The agreed conditions of effectiveness are:

(a) announcement inviting domestic and foreign oil companies to

participate in a fourth round of bidding for offshore and onshoreparcels selected by GOX for exploration;

(b) obtaining of the environmental clear.nce for all components of theproposed project; and

(c) establishing of a body in the Department of Petroleum and NaturalGas which would monitor the implementation of gas supply andutilization plans.

Environmental and Safety Issues

11. Offshore oil and gas operations are hazardous to the environmentand the personnel involved. While the risks cannot be completely eliminated,they can be minimized. The Environmental Impact Assessments for this project,which have been reviewed by the Bank, indicate that the environmental impactof the project will be within acceptable levels. While the construction ofplatforms and the laying of pipelines will initially disrupt the seabedconditions in their vicinity, the project would result in a net improvement inthe quality of the environment due to the substantial reduction of gasflaring. Since the gas that will be transported in the pipelines does notcontain a significant concentration of hydrogen sulfide, even a large releaseof gas into the atmosphere would not have a significant impact on theenvironment. While the project does not pose any major environmental orsafety risks, ONGC's safety record of offshore operations is somewhat belowthat of similar operations in industrial countries and should be Improved.Recommendations for a safety audit and safety engineering studies are includedas part of the project.

Special Operational Emphases

12. The project is in line with the Bank's emphasis on Improving theefficiency of public sector enterprises and our assistance strategy for theoil and gas sector. While ONGC has emerged as one of India's premier publicsector enterprises, which has been able to borrow in international financialmarkets and has achieved a high level of technical competence, the companywould benefit from a continued association with the Bank. The fact that theexcessive flaring of natural gas in the Bombay High oil field is essentiallydue to improper management of the Bombay High oil field, highlights the needfor a strengthening of ONGC's decision-making structure, particularly in thearea of project implementation. The project would provide the Bank with anopportunity to assist ONGC in its efforts to improve its projectimplementation capabilities and advise the Government on sectoral policyissues, such as the pricing of gas and the involvement of international oilcompanies in oil and gas exploration. Finally, our involvement in thisproject would be critical for the success of ONGC's efforts to mobilizecofinancing for the large foreign exchange requirements of this project.

Proiect Benefits

13. The investments under the proposed project will eliminate theflaring of about 12 MMCMD of gas and increase indigenous oil production byabout 4 million tons a year. The resulting increase in gas supplies willreduce imports of naphtha, which would be otherwise required for themanufacture of fertilizer, and of middle distillates for peak load lower

- 5 -

generation. This will save India about US$350 million of foreign exchangeannually (from 1995/96 onwards) that would otherwise be required for theimport of these fuels. The total net present value of the investments isapproximately US$1.3 billion. The economic rate of return is estimated at302.

Risks

14. The project faces three major risks: (i) delays in theimplementation of the project which would sharply reduce its viability, (ii)delays in the offtake of the additional gas that will be made availablethrough the project, and (iii) the possibility that ONGC will not be able toraise the foreign exchange required for the project. To minimize the risk ofimplementation delays, ONOC has agreed to award the construction of majoritems, such as platforms and submarine pipelines, on the basis of a series ofcontracts under single responsibility. In addition, ONGC has worked closelywith the 3ank to streamline its organization and management for theimplementation of projects. The bidding documents for all but two of themajor components of the project will have been reviewed by the Bank before theloan becomes effective. The risk of delays in the offtake of the gas will besignificantly reduced through the Government's decision to set up a specialmonitoring body in the Department of Petroleum and Natural Gas that willreview, on a quarterly basis, the progress in implementing the proposedproject as well as the projects that will utilize the additional gas supplies.The quarterly reports of the monitoring body will be submitted to the Bank forreview together with recommendations in the event of any slippage in projectimplementation. The - mk will have an opportunity to review theimplementation of these recommendations. To minimize the risk thatdifficulties in the financing of the foreign exchange components delays theproject, the Bank has worked closely with ONGC and the Government to ascertainthe availability of finance from official sources as well as export creditagencies and suppliers credits.

Recommendation

15. I am satisfied that the proposed loan would comply with theArticles of Agreement of the Bank and recommend that the Executive Directorsapprove the proposed loan.

Barber B. ConablePresident

Attachments by Wilfried P. Thalwitz

Washington, D.C.June 5, 1991

-6-

Schedule A

INDIA

GAS FLARING REDUCTION PROJECT

Estimated Costs and Financing Plan(US$ million)

Local Foreign Total

Estimated Project Cost /aProcess platform, NQP 50.2 209.0 259.2Compressors, SHG 30.0 125.0 155.0Process platform, SHG 55.2 230.0 285.2Linepipe, SHG - BPB 17.4 58.0 75.4Lsying, coating and wrapping, SHG - BPB 6.1 15.7 21.8Platform modifications 15.2 63.3 78.5Linepipe, ICP - Heera 21.0 70.0 91.0Laying, coating and wrapping, ICP - Heera 23.3 97.0 120.3Linepipe, BPB - Hazira 66.0 220.0 286.0Laying, coating and wrapping, BPB - Hazira 31.0 129.3 160.3Expansion of Hazira gas terminal 217.8 275.3 493.1Reservoir management, services and equipment 61.7 67.4 129.1Engineering of Hazira gas terminal 22.5 7.5 30.0Studies and training 0.6 2.0 2.6Environmental component 9.8 14.7 24.5

Base Cost (1991 prices) 627.7 1,584.2 2,211.9

Physical contingencies 62.8 158.4 221.2Price contingencies 205.8 239.5 445.3

Total Project Cost 896.3 1,982.1 2,878.4

Interest diring construction 101.8 204.1 305.9

Total Financing Required 998.1 2,186.2 3,184.3

Financing PlanWorld Bank 4e0.0 450.0Asian Development Bank 300.0 300.0Export-Import Bank of Japan 350.0 350.0Export/supplier credits 745.6 745.6ONGC 998.1 340.6 1,338.7

Total 998.1 2,186.2 3,184.3nonco =====

Note: Base cost includes customs duties of A$374.4 million equivalent.ONGC charges interest during constt-uction to operations

-.7-

Schedule BPage 1 of 2

INDIA

GAS FLARING REDUCTION PROJECT

Procaurement Method and Disbursements(USS million)

Procurement Method

Tota IProcurement Ele..nt ICD Other NtA !L rs8

Process platform, N4p 282.1 60.2 BB2.8(261.0) (261.0)

Compressors, SRO 1683.4 b/ o0.0 193.4

Process platform, SHC 312.0 b/ 55.2 867.2

Lirnpips, S*40 - BPS 7.1 Ib/ 17.4 98.5

Laying, coating and wrapping, SfHQ-BPS 28.7 8.8 27.5(19.2) (19.2)

Platform modifIcations 6S 1 16.2 100.8(78.8) (78.8)

Linopipo, ICP - Heore 91.8 b/ 21.0 112.8

Laying, coating and wrapping,;CP - Hoora 129.2 c/ 283. 162.6

Linepip., BPS - Hazira 318.8 b/ 68.0 879.0

Laying, coating and wrapping,BPS - Hazira 160.5 c/ 81.0 211.6

Expansion of HNaira gas terminal 818.4 57.8 671.2

Resorvotr management, serviceand equipment 161.8 161 8

(79.3) (79.8)Engineering and projectmanagement 40.6 40.6

(0.2) (9.2)

Studies and training 8.8 8.8(2.5) (2.5)

Enmironmenta component 27.7 c/ 8.6 81.2

Tot I 1,169.5 1834.5 874.4 2,878.4(486.8) (11.7) (450.0)

Note: Figures in parentheses are the respective amounts financed by the Bank.a/ Taxes and duties.bX Export and suppliers' credits.i ADS procurement procedures

Schedule BPane 2 of 2

Disbursements

Category Amont Expenditures to befinanced

Process facilities and power systems

(a) equipment and materials 325.0 100% of foreignexpenditures and 100%of local expenditures(ex-factory cost)

(b) erection/installation and rig hire 90.0 100% of foreignexpenditures and 90% oflocal expenditures

(c) supervision and specialized services 10.0 100% of expenditures

Consultant services 5.0 100% of expenditures

Unallocated 20.0

Total 450.0

Estimated IBRD Disbursements

IBRD Fiscal Year 1992 1993 1994 1995 1996

Annual 111.1 139.4 135.0 61.0 3.5Cumulative 111.1 250.5 385.5 446.5 450.0

-9-

Schedule C

GAS FLARING REDUCTXONf PROJU

Timetable of KeMy roiect Processina Events

(a) Time taken to prepare the project: 6 months

(b) Prepared by: Oil and Natural Gas Commissionwith Bank Assistance

(c) First Bank mission: October 22, 1990

(d) Appraisal mission departure: April 8, 1991

(e) Negotiations: May 9 - 13. 1991

(f) Planned date of effectiveness: September 30, 1991

Credit/Loan No. loct PCR DLate PPAR No.

2241-IN South Bassein Gas December 28, 1990 N/ADevelopment Project

-10-

SCHEDULE 0

PACE 1 of 4

THE STATUS OF BANK CRORP OPERATIONS IN INDIA

A. STATEUENT OF ANK LOANS AND IDA CREDITS

(As of March 81, 1991)

USB Million(not of cancellations)

Loan or FloSl Year --------______ ----________--________Credit No. of Approval Purpose BRD IDA 1/ Undisbureod 2/

76 Loans/ 6N16.2 -162 Credits fully disbursed - 10588.2

1172-IN 1982 Korba Thermal Power IU - 400.0 20.081177-IN 1992 Madhy. Pradesh Major lrrigation - 220.0 47.68'1t8-IN 1982 West Bengal Social Forestry - 29.0 2.082076-IN 1982 Ramagundam Thermal Power 11 280.0 - 9.611280-IN 1988 Gujarat Water Supply - 72.0 27.071819-IN 1988 Haryana Irrigation II 160.0 82.0419B2-IN 1983 U.P. Public Tubwells II - 101.0 2.071856-IN 1988 Upper Indravati Hydro Power - 170.0 40.772278-IN 1983 Upper Indrevati Hydro Power 16B.4 - 158.011869-IN 198B Calcutta Urban Development RII - 147.0 80.812283-IN 1983 Central Power Transmission 250.7 - 187.282296-IN 1988 Himalayan Watershed Managemnt 81.2 - 10.181883-IN 1989 Maharashtra Water Utilization - 82.0 2.562329-IN 1988 Madhya Pradesh Urbon 18.1 - 6.581424-IN 1984 Rainfed Areas Watershed Dev. - 81.0 29.801426-IN 1984 Populatton III - 70.0 8.441482-IN 1984 Karnataka Soclal Forestry - 27.0 8.262887-IN 1984 Nhava Sheva Port 250.0 - 21.6B2893-IN 1984 Dudhichua Coal 109.0 - 20.962403-IN 1984 Cambay Basin Petroleum 213.6 - 48.692415-IN 1984 Madhya Pradesh Fertilizer 184.6 - 19.761464-IN 1984 Tamil Nadu Water Supply - 98.6 21.72SF-12-IN 1984 Tamil Nadu Water Supply 38.6 39.67SF-1B-IN 1984 Perlyar Valgal IT Irrigatlon - 17.6 12.761488-IN 1984 Upper Cang Irriation - 126.0 98.721498-tN 1984 Gujarat Medium Irrigation - 172.0 88.642416-IN 1984 Indira Sarovar Hydroelectric 17.4 - 12.60SF-20-IN 1984 Indira Sarovor Hydroelectric - 13.8 16.901183-IN 1986 Indira Sarovor Hydroelectric - 18.2 10.?82417-IN 1984 Rallways Electrification 279.2 - 29.112442-IN 1984 Foraka as Thermal Power 800.8 - 124.272452-IN 1984 Fourth Trombay Thermal Power 186.4 - 11.611602-IN 1984 National Cooperative

Development Corporation III - 220.0 113.701614-IN 1985 Kerala Soclal Forestry 81.8 17.181528-IN 1985 National Agric. Extension I -9.1 38.891644-IN 1985 Bombay Urban Development - 188.0 110.612497-rN 1985 Namards (ui arat) Dam and Power 200.0 - 200.001652-IN 1985 Narmada (Ouj art) Dam and Power - 100.0 57.091568-IN 1985 Narmada (Gu arat) Canal - 160.0 99.60169-1N 1986 Second National Agricultural Ent. - 49.0 84.701611-IN 1985 National Social Forestry - 166.0 81.212498-IN 1986 Jheria Coking Coal 67.7 - 6.282605-IN 1985 Maharashtra Petrochemicals 800.0 - 9.692634-rN 1986 Sueond National Highways 200.0 - 189.792544-IN 1985 Chandrapur Thermal Power 800.0 - lS0.eo2565-IN 1985 Rihand Power Transmlsoion 250.0 - 68.902S62-IN 1985 Korala Power 178.0 - 140.071619-RN 1986 West Bngal Minor Irrigation - 99.0 119.06

SCHEDULE 0

PAGE 2 of 4

USI Million(net of cancellations)

Loon or Fiscal Yar -------------------------------Credit No. of Approval Purpoo. lRD IDA 1/ Undlsbu,eod 2/

lB26-IN 1986 Maharashtre Composite Irrigation - 160.0 188.4B1022-IW 1986 Kerala Water Supply and Sanitation - 41.0 42.411628-IN 1988 West Bengal Population - 61.0 26.811881-IN 1986 National Agrlcultural Res arch It - 72.1 66.802629-IN 1986 Industrial Export Dev. Finance 90.0 - 18.682680-IN 1986 ICICI-Indus. Exp. Dcv. Finance 160.0 - 42.431648-ZN 1986 Oujarat Urban - 62.0 46.722660-IN 1986 Cement Industry 165.0 - 90.722661-IN 1986 ICICI - Cement Industry 85.0 - 25.101665-IN 1986 Andhra Pradesh IX IrrIgation 140.0 168.142682-IN 1986 Andhra Pradesh II Irrigation 191.0 - 181.002674-IN 1966 Combined Cycle Power 485.0 - 41.072780-IN 1986 Cooperative Fertilizer 118.8 - 25.891787-IN 1987 Bihar Tubewells 68.0 66.762769-IN 1987 Bombay Water Supply &

Sewerage III 40.0 - 40.001760-IN 1987 Bombay Water Supply £

Sewerage III 145.0 115.401764-IN 1987 National Agric. Extmnsion III - 85.0 71.781757-IN 1987 Gujarat Rural Roadb 119.6 109.021770-IN 1987 National Water Management - 114.0 100.072785-IN 1987 Oil India Petroleum 140.0 - 69.212796-IN 1987 Coal Mining A Quality Improvement 840.0 - 124.7S2813-IN 1987 Telecommunications IX 198.0 - 8S.442797-IN 1987 utter Pradesh Urban Development 20.0 - 20.001780-IN 1987 utter Pradosh Urban Development - 180.0 99.622827-IN 1987 Karnataka Power 880.0 - 293.762844-IN 1987 National Capital Power 425.0 - 239.882846-IN 1987 Talcher Thermal 875.0 - 830.882848-IN 1987 Madrae Water Supply 65.0 - 49.881822-IN 1987 Madras Water Supply - 16.0 1.982893-IN 1988 National Dairy II 200.0 - 200.001859-IN 1988 National Dairy 1I - 160.0 78.612904-IN 1988 Western Gas Development 288.2 - 85.782928-IN 1988 Indus. Fin. & Tech. Aset. 860.0 - 1S8.902985-IN 1988 Railway Modernization III 390.0 - 275.892988-IN 1988 Karnatak. Power IX 260.0 - 238.762957-IN 1988 Utter Pradesh Power 850.0 - 304.481928-IN 1988 TamII Nadu Urban Oev. - 800.2 220.621981-IN 1988 Bombay A Madras Population 67.0 18.822994-IN 1989 States Roads 170.0 - 170.001959-IN 1989 States Roads - 80.0 61.623024-IN 1989 Nathpa Jhakri Power 48S.0 - 448.291962-IN 1989 National Seeds III - 160.0 103.563044-IN 1989 Petroleum Transport 840.0 - 805.002008-IN 1989 Vocational Training - 260.0 228.848046-IN 1989 Vocational TrainIng 80.0 - 80.002010-IN 1989 Upper Krishna Irrigation II - 160.0 128.828060-IN 1989 Upper Krishna Irrigetion IT 166.0 - 166.008058-IN 1989 Export Development 120.0 - 97.728069-IN 1989 ICICI - Export Development 176.0 - 146.522022-IN 1989 National Sericulture - 147.0 128.08806-IN 1989 National Sericulture 80.0 - 80.008098-IN 1989 ElectronIcs Industry Dev. 8.0 7.508094-IN 1989 ICICI - Electronics Ind. Dev. 101.0 - 76.87809-IN 1989 1D0I - Electronics Ind. Dev. 101.0 - 82.74909f-IN 1989 Uaharashtra Power 400.0 - 879.272067-IN 1989 Nat l. Family Welfare Trng. - 118.8 98.099108-XN 1i8s Not l. Family Welfare Trng. 11.8 - 11.808119-IN 1990 Industrial Technoloy Development 145.0 _ 128.902064-IN 1990 Industrial Technology Development - 65.0 58.68

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SCNEDULE D______________

PAGE 3 of 4

US$ Uillion(not of cancellatione)

Loan Or Fiscal Y rCredit No. of Approval Purpose IDR IDA 1/ Und;Sbured 2/

8144-IN 1990 PunjOb Irrigstlon/brainag. 16.0 - 16.002076-IN 1990 Puni b IrrigateOn/Drainage - 150.0 146.992115-IN 1990 Hyderabad Water Supply - 79.9 80.708181-IN 1990 Hyderabad Water Supply 10.0 - 10.008196-IN 1980 Cement Industry Restructuring 800.0 - 288.983176-1N 1990 Waterhed Dv. lopent till*) 13.0 - 18.002100-IN 1990 Watershed Devolopment (Mill)* - 76.0 78.798196-I1 1990 Technician Educati one 26.0 - 26.002180-IN 1900 Technician Education I - 236.0 229.688197-iN 1990 WOtershed DevOlopmtnt (P lain.) 7.0 - 7.002181-IN 1990 Watershed Development (Plain.) - 56.0 64.678199-IN 1990 Population Training VII 10.0 - 10.0021833-N 1990 Population Training VII 86.7 85.862168-IN 1990 TamlI Nadu Integreted Nutrition II - 95.8 95.613287-IN 1990 Northern Region Transmlssion 485.0 - 465.0032S9-IN 1990 Private Power Utilities Is 98.0 - 98.008253-IN 1991 ICOS I (Orlss, A Andhra Pradesh) 10.0 - 10.002173-IN 1991 ICDS I (Orissa & Andhra Predesh) - 96.0 94.833268-IN 1991 Petrochemicals 12.0 - 11.008259-IN 1991 Petrochemicals 238.0 - 212.83_280-1N 1991 Emergency Reconstruction 40.0 - 40.002179-IN 1991 Emergency Reconstruction - 170.0 187.763800-IN 1991 Tamil Nsdu Agricultural Development. 20.0 - 20.002216-IN 1991 Tamil Nadu Agricultural Development. - 92.8 86.662228-IN 1991 Technicial Educatlon. - 807.1 288.63

Total 17878.0 17681.1 12204.31of which has been repaid 279#.8 669.6

Total now outstanding 14681.2 16891.6Amount Sold 188.8of which has beon repaid 188.8

Total now held by Bank and IDA S/ 14681.2 16891.6

Total undisbursed (excluding .) 7238.0 4i88.2

I/ IDA Credit amounts for SIR-denominated Credits are expressed In terms of their US dollarequivalents, as established at the time of Credit negotietlons and as subsequentlypresented to the Board.

2/ Undisbursed amounts for SDR-denominated IDA Credits are derived from cumulative disbursmentsconverted to their US dollar equlvalents at the SDR/US dollar exchange rate Ineffect on March 81 1991, while or;ginal principal Is based on the exchange rate Ineffect at negotlations. This accounts for the fact that In some cases the undisbursedbalance as shown In USS equivalent ls higher than the original principal.

8/ Prior to exchange adjustment.

s Not yet effective.

-13- SCHEDULE 0PACE 4 OF 4

D. STATEMENT OF IFC SNVESTMENTS

(As of March 81, 1991)

Amount (USS oIliIon)

Fiscal Year Company Loan Equity Total

1959 Republic Forge Company Ltd. .50 - 1.01969 Kirloskn Oil Engines Ltd. 0.8 - 0.861960 Asma Sillimanite Ltd. 1.8 - 1.881961 K.S.B. Pumps Ltd. 0.21 - 0.21168-60 Precision Bearings Indio Ltd. 0.6 0.88 1.031964 Fort Gloater IndustrIes Ltd. 0*.8 0.40 1.211984-75-79/00 MLhindra Ugine Stesl Co. Ltd. 11.01 2.84 14.651994 Lakabhl Machine Works Ltd. 0.98 0.8 1.821US? Joyshree Chemicals Ltd. 1.05 0.10 1.161967 Indion Explosives Ltd. 0.60 2.66 11.461969-70 Zuari Agro-Chemicale Ltd. 15.15 8.76 16.911976-87 Escort. Limited 16.66 - 15.661978/91 Housing Development Finance Corp. 104.00 2. 10 106.101980/82/87/69 D0epk Fertilizer and

Petrochemicals Corporation Ltd. 7.50 4.23 11.781981 Coromandel Fertilizers Limlted 16.88 - 15.881981-88-89 Tate Iron and Steel Company Ltd. 72.07 21.48 98.531981 MNga runn Costed Tubes Ltd. 1.50 - 1.50

l981-S8/87 Nagrj uns Signode Limited 2.99 - 2.991981 Nagar uno St*els Limlted 2.88 0.78 8.661982 Ashok Leyland Limited 28.00 - 28.001982 The Somby Oyelng and 0.00

Manufacturing Co. Ltd. 16.80 - 18.801982 Bharat Forge Company Ltd. 15.90 - 1.901962 The Indian Rayon Corp. Ltd. 14.57 - 14.671984-88 The Owallor Rayon Silk Manu-

facturing (Weaving) Co. Ltd. 15.95 - 15.951985 Bihar Sponge 16.24 0.68 15.921985/90/91 Bajaj Auto Ltd. 28.93 - 28.981985 Modi Cement 18.05 - 18.051985/90/91 India Lease Development Ltd. 8.50 0.78 9.28198 Larsn and Toubro Ltd. 18.09 - 18.091986 India Equlpment Leasing Ltd. 2.50 0.80 2.801986 BaJaJ Tempo Limited 80.54 - 80.54108 The Great Eastern Shipping

Company Ltd. 8.00 10.65 10.651987 Oujarat Nermedr Valley FertilIelr a 8.07 - 88.071987 Hero Honda Motors Ltd. 7.74 - 7.741987 Wi..o Limited 4.70 - 4.701987-89-90 Titan Watches Limited 21.95 0.56 22.511987 Export-mport Bank of India 14.98 - 14.981go7 Oujarat Fusion Glose Ltd. 7.52 1.70 9.221987 The Gujarat Rural Housing 0.00

Finance Corp. - 0.19 0.191987 Hindustan Motors Ltd. 88.81 - 88.81198 Invel Transmissions Ltd. - 1.07 1.07199 BSI Advanced Technology 0.20 0.201989 Koltron Telephone Instruments, Ltd. - 0.40 0.401989 GuJerat State FertilIser 29.42 - 29.421989 Abmedabad Eletrlaity Company, Ltd. 21.12 - 21.121990/91 Tate Electric 108.88 - 106.981900 J.V. Sher & Stock Brokers Private Ltd. - 0.89 0.891981/90 Mabindra Mabindra Ltd. 25.00 6.ua 81.881990 UCAL Fuel System Ltd. 0.68 0.891990 Indust. Credit & Investment Corp. of India - 25.00 25.001991 VECAUS IS - 2.62 2.621981 CESC Ltd. 20.74 - 20.741991 Herdilla Oxides and Electronics Ltd. - 0.29 0.299l91 Infrastructure Leasing & Financial Services 15.00 1.81 16.81

1991 Triveni Pool Intairdril Ltd. (TPIL) - 0.55 0.66

TOTAL GROSS COMIIITIIENTS 880.42 98.47 928.89

Less: Cancellation, Termlnations,Repayments and Sales 407.18 21.85 429.01

N., Held 428.20 71.62 494.88

Undlsbursed 178.21 27.72 205.98

_flRD 22892

INDIAGAS FLARING GUJARAT

REDUCTION PROJECTC_GANDAR

COMPONENTS: GNA

O PROCESS PLATFORMS

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- FAULT UNES GiN FAL TAPTI

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INTERNATIONAL BOUNDARIES SUT0/TAPTI

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