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CONFORMED COPY 
 
LOAN NUMBER 7593-IN 
 
Loan Agreement 
 
(Additional Financing for Fourth Power System Development Project) 
 
between 
 
POWER GRID CORPORATION OF INDIA LIMITED 
 
and 
 
INTERNATIONAL BANK FOR RECONSTRUCTION 
AND DEVELOPMENT 
 
Dated January 27, 2009 
 
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LOAN AGREEMENT 
 
AGREEMENT dated January 27, 2009, between POWER GRID 
CORPORATION OF INDIA LIMITED (“Borrower”) and INTERNATIONAL BANK 
FOR RECONSTRUCTION AND DEVELOPMENT (“Bank”) for the purpose of 
providing additional financing for activities related and additional to the Original Project 
(as defined in the Appendix to this Agreement).  The Borrower and the Bank hereby 
agree as follows: 
 
ARTICLE I 
–
GENERAL CONDITIONS; DEFINITIONS 
 
1.01. 
The General Conditions (as defined in the Appendix to this Agreement) 
constitute an integral part of this Agreement. 
 
1.02. 
Unless the context requires otherwise, the capitalized terms used in this 
Agreement have the meanings ascribed to them in the General Conditions or in 
the Appendix to this Agreement. 
 
ARTICLE II 
–
LOAN 
 
2.01. 
The Bank agrees to lend to the Borrower, on the terms and conditions set forth or 
referred to in this Agreement, the amount of four hundred million Dollars 
($400,000,000) 
(“Loan”), to assist in financing the project described in  
Schedule 1 to this Agreement (“Project”). 
 
2.02. 
The Borrower may withdraw the proceeds of the Loan in accordance with 
Section IV of Schedule 2 to this Agreement.
 
2.03. 
The Front-end Fee payable by the Borrower shall be equal to one quarter of one 
percent (0.25%) of the Loan amount.  The Borrower shall pay the Front-end Fee 
not later than 60 days after the Effective Date. 
 
2.04. 
The interest payable by the Borrower for each Interest Period shall be at a rate 
equal to LIBOR for the Loan Currency plus the Variable Spread; provided, that 
upon a Conversion of all or any portion of the principal amount of the Loan, the 
interest payable by the Borrower during the Conversion Period on such amount 
shall be determined in accordance with the relevant provisions of Article IV of 
the General Conditions. Notwithstanding the foregoing, if any amount of the 
Withdrawn Loan Balance remains unpaid when due and such non-payment 
continues for a period of thirty (30) days, then the interest payable by the 
Borrower shall instead be calculated as provided in Section 3.02(d) of the 
General Conditions. 
 
2.05. 
The Payment Dates are February 1 and August 1 in each year. 
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2.06. 
The principal amount of the Loan shall be repaid in accordance with the 
amortization schedule set forth in Schedule 3 to this Agreement. 
 
2.07. 
(a) 
The Borrower may at any time request any of the following Conversions 
of the terms of the Loan in order to facilitate prudent debt management: 
(i) a change of the Loan Currency of all or any portion of the principal 
amount of the Loan, withdrawn or unwithdrawn, to an Approved 
Currency; (ii) a change of the interest rate basis applicable to all or any 
portion of the principal amount of the Loan withdrawn and outstanding 
from a Variable Rate to a Fixed Rate, or vice versa; and (iii) the setting 
of limits on the Variable Rate applicable to all or any portion of the 
principal amount of the Loan withdrawn and outstanding by the 
establishment of an Interest Rate Cap or Interest Rate Collar on the 
Variable Rate. 
 
(b) 
Any conversion requested pursuant to paragraph (a) of this Section that 
is accepted by the Bank shall be considered a “Conversion”, as defined 
in the General Conditions, and shall be effected in accordance with the 
provisions of Article IV of the General Conditions and of the Conversion 
Guidelines.  
 
(c) 
Promptly following the Execution Date for an Interest Rate Cap or 
Interest Rate Collar for which the Borrower has requested that the 
premium be paid out of the proceeds of the Loan, the Bank shall, on 
behalf of the Borrower, withdraw from the Loan Account and pay to 
itself the amounts required to pay any premium payable in accordance 
with Section 4.05(c) of the General Conditions up to the amount 
allocated from time to time for the purpose in the table in Section IV of 
Schedule 2 to this Agreement. 
 
ARTICLE III 
–
PROJECT 
 
3.01. 
The Borrower declares its commitment to the objectives of the Project.  To this 
end, the Borrower shall carry out the Project in accordance with the provisions of 
Article V of the General Conditions. 
 
3.02. 
Without limitation upon the provisions of Section 3.01 of this Agreement, and 
except as the Borrower and the Bank shall otherwise agree, the Borrower shall 
ensure that the Project is carried out in accordance with the provisions of 
Schedule 2 to this Agreement. 
 
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ARTICLE IV 
–
REMEDIES OF THE BANK 
 
4.01. 
The Additional Event of Suspension consists of the following, namely the 
Memorandum and Articles of Association shall have been amended, suspended, 
abrogated, repealed or waived so as to affect materially and adversely the ability 
of the Borrower to perform any of its obligations under this Agreement.  
 
4.02. 
The Additional Event of Acceleration consists of the following, namely that the 
event specified in Section 4.01 of this Agreement occurs. 
 
ARTICLE V 
–
EFFECTIVENESS; TERMINATION
 
5.01. 
The Effectiveness Deadline is the date ninety (90) days after the date of this 
Agreement. 
 
ARTICLE VI – REPRESENTATIVE; ADDRESSES
 
6.01. 
The Borrower’s Representative is the Chairman and Managing Director.   
 
6.02. 
The Bank’s Address is: 
 
International Bank for Reconstruction and Development 
1818 H Street, N.W. 
Washington, D.C. 20433 
United States of America 
 
Cable 
address: 
 Telex: 
  Facsimile: 
 
INTBAFRAD  
248423(MCI) 
or 
1-202-4776391 
Washington, D.C. 
  64145(MCI) 
 
6.03. 
The Borrower’s Address is: 
 
Power Grid Corporation of India Limited 
B-9, Qutab Institutional Area 
Katwaria Sarai, New Delhi – 110016 
 
Facsimile: 
 
91-11-26560054 
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AGREED at New Delhi, India, as of the day and year first above written. 
 
INTERNATIONAL BANK FOR 
 
RECONSTRUCTION AND DEVELOPMENT 
 
By 
 
 
/s/ N. Roberto Zagha 
 
Authorized Representative 
 
POWER GRID CORPORATION OF INDIA    
 LIMITED 
 
By 
 
 
/s/ S. K. Chaturvedi 
 
Authorized Representative 
 
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SCHEDULE 1 
 
Project Description 
 
The objective of the Project is to strengthen the transmission system in order to 
increase reliable power exchange between the regions and States of India.  
 
The Project consists of the following schemes and activities: 
 
Transmission System Strengthening Schemes 
 
1. 
Completion of the East-West Transmission Corridor, specifically supply and 
installation of Fixed and Variable Series Compensation at Raipur Substation for 
400 kV Raigarh-Raipur double circuit Line. 
 
2. 
Completion of the Western Region System Strengthening Scheme-II, 
specifically: (a) construction of Wardha-Parli 400kV double circuit line; (b) 
construction of Bhadrawati-Parli 400kV double circuit line; (c) construction of 
Raipur-Wardha 400kV double circuit line; (d) construction of  400 kV Parli 
substation; (e) extension of 400 kV Bhadrawati, Seoni, Parli, Wardha and Raipur; 
(f) extension of Raigarh, Karamsad, Limbdi, Zerda, Ranchhodpura and 
Birsinghpur substations; (g) supply and installation of Shunt Reactor; and (h) 
supply and installation of Fixed Series Compensation Package at Wardha 
Substation for 400 kV Wardha-Raipur double circuit line and at Rajgarh 
substation for 400 kV Raigarh-Karamsad double circuit line. 
 
3. 
Completion of the Eastern Region System Strengthening Scheme-I, specifically: 
(a) supply of conductors for the Durgapur-Jamshedpur, Jamshedpur-Baripada, 
and Baripada-Mendhasal 400 kV double circuit lines; and (b) reconductoring of 
the 400 kV double circuit Siliguri-Purnea line. 
 
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SCHEDULE 2
 
Project Execution 
 
Section I. 
Implementation Arrangements
A. Institutional 
Arrangements
 
Throughout Project implementation, the Borrower shall establish and maintain an 
adequate organizational structure, with functions, powers, staff and resources 
necessary and appropriate for Project implementation, and satisfactory to the 
Bank, including internal audit structure.  
B. Anti-Corruption 
The Borrower shall ensure that the Project is carried out in accordance with the 
provisions of the Anti-Corruption Guidelines. 
 
C. Safeguards
 
Throughout Project implementation, the Borrower shall ensure that the Project is 
carried out in accordance with the terms and conditions, and procedures set forth 
in the ESPP, and shall ensure that the ESPP is revised, repealed, or not enforced 
only with the prior approval of the Bank. 
Section II. 
Project Monitoring, Reporting and Evaluation
A. 
Project Reports   
 
1. 
The Borrower shall monitor and evaluate the progress of the Project and prepare 
Project Reports in accordance with the provisions of Section 5.08 of the General 
Conditions and on the basis of indicators agreed with the Bank.  Each Project 
Report shall cover the period of one Fiscal Year quarter, and shall be furnished to 
the Bank not later than forty-five (45) days after the end of the period covered by 
such report.  
 
2. 
Notwithstanding the requirement in Section II.A.1 of this Schedule, by  
April 30, 2010, the Borrower shall carry out a comprehensive mid-term Project 
review, and shall by June 30, 2010, prepare and furnish to the Bank a mid-term 
Project progress report, satisfactory to the Bank. 
 
3. 
For purposes of Section 5.08(c) of the General Conditions, the report on the 
execution of the Project and related plan required pursuant to that Section shall 
be furnished to the Bank not later than January 31, 2015. 
 
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B.
 
Financial Management, Financial Reports and Audits   
 
1. 
Without limitation upon the provisions of Section 5.09(a) of the General 
Conditions, the Borrower shall maintain a financial management system and 
prepare financial statements in accordance with consistently applied accounting 
standards and the Finance Manuals acceptable to the Bank, both in a manner 
adequate to reflect the operations and financial condition of the Borrower, 
including the operations, resources and expenditures related to the Project. 
 
2. 
Without limitation upon the provisions of Part A of this Section, the Borrower 
shall prepare and furnish to the Bank as part of the Project Reports, not later than 
thirty (30) days after the end of each month, interim unaudited financial reports 
for the Project covering the month, in form and substance satisfactory to the 
Bank. 
 
3. 
Without limitation upon the provisions of Section 5.09(b) of the General 
Conditions, the Borrower shall have its financial statements referred to above 
audited by independent auditors acceptable to the Bank, in accordance with 
consistently applied auditing standards acceptable to the Bank.  Each audit of 
these financial statements shall cover the period of one Fiscal Year of the 
Borrower.  The audited financial statements for each period shall be furnished to 
the Bank not later than six (6) months after the end of the period.
 
Section III. 
Procurement
A. General
 
1.
 Goods
.
All goods required for the Project and to be financed out of the proceeds 
of the Loan shall be procured in accordance with the requirements set forth or 
referred to in Section I of the Procurement Guidelines, and with the provisions of 
this Section. 
 
2. 
Definitions
.
The capitalized terms used below in this Section to describe 
particular procurement methods or methods of review by the Bank of particular 
contracts refer to the corresponding method described in the Procurement 
Guidelines. 
 
B. 
Particular Methods of Procurement of Goods 
 
1.
 
International Competitive Bidding
.
Except as otherwise provided in 
 
paragraph 2 below, goods shall be procured under contracts awarded on the basis 
of International Competitive Bidding procedures. 
 
2.
 
Other Methods of Procurement of Goods
.
The following table specifies the 
methods of procurement, other than International Competitive Bidding, which 
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may be used for goods.  The Procurement Plan shall specify the circumstances 
under which such methods may be used. 
 
Procurement Method 
(a) 
National Competitive Bidding, and the additional provisions agreed 
between the Borrower and the Bank 
(b) Direct 
Contracting 
C.
 
Review by the Bank of Procurement Decisions
 
The Procurement Plan shall set forth those contracts which shall be subject to the 
Bank’s Prior Review.  All other contracts shall be subject to Post Review by the 
Bank. 
 
Section IV. 
Withdrawal of Loan Proceeds
A. 
General   
 
1. 
The Borrower may withdraw the proceeds of the Loan in accordance with the 
provisions of Article II of the General Conditions, this Section, and such 
additional instructions as the Bank shall specify by notice to the Borrower 
(including the “World Bank Disbursement Guidelines for Projects” dated May 
2006, as revised from time to time by the Bank and as made applicable to this 
Agreement pursuant to such instructions), to finance Eligible Expenditures as set 
forth in the table in paragraph 2 below. 
 
2. 
The following table specifies the categories of Eligible Expenditures that may be 
financed out of the proceeds of the Loan (“Category”), the allocation of the 
amounts of the Loan to each Category, and the percentage of expenditures to be 
financed for Eligible Expenditures in each Category. 
 
Category 
Amount of the 
Loan Allocated 
(Expressed in 
Dollars) 
 
Percentage of 
Expenditures 
to be Financed 
Goods 400,000,000 
100% 
TOTAL AMOUNT 
400,000,000 
 
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B. 
Withdrawal Conditions; Withdrawal Period   
 
1.
 
Notwithstanding the provisions of Part A of this Section, no withdrawal shall be 
made: (a) from the Loan Account until the Bank has received payment in full of 
the Front-end Fee; or (b) for payments made prior to the date of this Agreement, 
except that withdrawals up to an aggregate amount not to exceed $80,000,000 
equivalent may be made for payments made prior to this date but on or after 
April 1, 2008, for Eligible Expenditures.   
 
2.
 
The Closing Date is July 31, 2014.
 
Section V. 
Other Undertakings
1. 
Except as the Bank shall otherwise agree, the Borrower shall take all steps 
necessary to maintain its accounts receivable at a level not exceeding an amount 
equivalent to the proceeds of its transmission and other regulated services for the 
three (3) preceding months. 
 
2. 
(a) 
Except as the Bank shall otherwise agree, the Borrower shall take all 
such measures (including, without limitation, adjustments of the structure 
and levels of its tariffs) as shall be required to produce, starting with the 
fiscal year beginning April 1, 2008, funds from internal cash generation 
equivalent to not less than twenty (20) percent of the annual average of 
the Borrower’s capital expenditures incurred or expected to be incurred 
during the previous, current and following fiscal year. 
 
(b) 
For the purposes of this paragraph 2: 
 
(i) 
the term “funds from internal sources” means the difference 
between: (A) the sum of gross revenues from all sources related 
to the Borrower’s operations, contributions in aid of 
construction, net non-operating income, proceeds from sales of 
bonds issued in lieu of outstanding receivables, and any 
reduction in non-cash working capital; and (B) the sum of all 
expenses of the Borrower’s operations, including maintenance 
and administration (excluding depreciation and other non-cash 
operating charges), interest and other charges on debt (excluding 
interest financed under a loan contract), repayment of loans 
(including sinking fund payments, if any), all taxes or payments 
in lieu of taxes, all cash dividends and other cash distributions of 
surplus, increase in non-cash working capital and any other cash 
outflows other than cash expenditures related to the operations of 
the Borrower; 
 
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(ii) 
the term “capital expenditures” means all expenditures incurred 
on account of fixed or capital assets, including interest charged 
to construction, related to the operations of the Borrower; 
 
(iii) 
the term “gross revenue” means the revenue earned and received 
for the services provided by the Borrower; 
 
(iv) 
the term “expenses” means the sum of all operating expenses, 
taxes on income and profits, depreciation and interest charged on 
all debentures, bonds and loans; 
 
(v) 
the term “operating expenses” means the cost of operation and 
maintenance, service management and administrative expenses, 
and all taxes accruing during the financial year, other than taxes 
on income and profits of the Borrower; 
 
(vi) 
the term “taxes on income and profits” consists of income taxes 
and other levies accrued by the Borrower according to the 
provisions of any legislation or regulation applicable in this 
respect; 
 
(vii) 
the term “depreciation” means the applicable provision on 
depreciation used to prepare the accounts referred to in Section 
4.01 of this agreement; and  
 
(viii) 
the term “interest charged on all debentures, bonds and loans” 
means all interest, excluding interest during construction, 
accrued by the Borrower during the fiscal year and all other 
charges on debt. 
 
3. 
(a) 
Except as the Bank shall otherwise agree, the Borrower shall not incur 
any debt, if after the incurrence of such debt the ratio of debt to equity 
shall be greater than four (4) to one (1). 
 
(b) 
For purposes of this paragraph 3: 
 
(i) 
The term “debt” means any indebtedness of the Borrower 
maturing by its terms more than one year after the date on which 
it is originally incurred. 
 
(ii) 
Debt shall be deemed to be incurred: (A) under a loan contract or 
agreement or other instrument providing for such debt or for the 
modification of its terms of payment, on the date, and to the 
extent, the amount of such debt has become outstanding pursuant 
to such contract, agreement or instrument; and (B) under a 
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guarantee agreement, on the date of the agreement providing for 
such guarantee has been entered into but only to the extent that 
the guaranteed debt is outstanding. 
 
(iii) 
The term “equity” means the sum of the total unimpaired paid-up 
capital, retained earnings and reserves of the Borrower not 
allocated to cover specific liabilities. 
 
Whenever for the purposes of this Section V it shall be necessary to value, in 
terms of the currency of the Guarantor, debt payable in another currency, such 
valuation shall be made on the basis of the prevailing lawful rate of exchange at 
which such other currency is, at the time of such valuation, obtainable for the 
purposes of servicing such debt, or, in the absence of such rate, on the basis of a 
rate of exchange acceptable to the Bank. 
 
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SCHEDULE 3 
 
Amortization Schedule 
 
1. 
The following table sets forth the Principal Payment Dates of the Loan and the 
percentage of the total principal amount of the Loan payable on each Principal 
Payment Date (“Installment Share”).  If the proceeds of the Loan have been fully 
withdrawn as of the first Principal Payment Date, the principal amount of the 
Loan repayable by the Borrower on each Principal Payment Date shall be 
determined by the Bank by multiplying:  (a) Withdrawn Loan Balance as of the 
first Principal Payment Date; by (b) the Installment Share for each Principal 
Payment Date, such repayable amount to be adjusted, as necessary, to deduct any 
amounts referred to in paragraph 4 of this Schedule, to which a Currency 
Conversion applies. 
 
Principal Payment Date 
Installment Share 
(Expressed as a Percentage)
 
February 1, 2013 
1.69% 
August 1, 2013 
1.70% 
February 1, 2014 
1.71% 
August 1, 2014 
1.72% 
February 1, 2015 
1.72% 
August 1, 2015 
1.73% 
February 1, 2016 
1.74% 
August 1, 2016 
1.75% 
February 1, 2017 
1.76% 
August 1, 2017 
1.77% 
February 1, 2018 
1.78% 
August 1, 2018 
1.79% 
February 1, 2019 
1.79% 
August 1, 2019 
1.80% 
February 1, 2020 
1.81% 
August 1, 2020 
1.82% 
February 1, 2021 
1.83% 
August 1, 2021 
1.84% 
February 1, 2022 
1.85% 
August 1, 2022 
1.86% 
February 1, 2023 
1.87% 
August 1, 2023 
1.88% 
February 1, 2024 
1.89% 
August 1, 2024 
1.90% 
February 1, 2025 
1.91% 
August 1, 2025 
1.91% 
February 1, 2026 
1.92% 
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August 1, 2026 
1.93% 
February 1, 2027 
1.94% 
August 1, 2027 
1.95% 
February 1, 2028 
1.96% 
August 1, 2028 
1.97% 
February 1, 2029 
1.98% 
August 1, 2029 
1.99% 
February 1, 2030 
2.00% 
August 1, 2030 
2.01% 
February 1, 2031 
2.02% 
August 1, 2031 
2.03% 
February 1, 2032 
2.04% 
August 1, 2032 
2.05% 
February 1, 2033 
2.06% 
August 1, 2033 
2.07% 
February 1, 2034 
2.08% 
August 1, 2034 
2.09% 
February 1, 2035 
2.10% 
August 1, 2035 
2.12% 
February 1, 2036 
2.13% 
August 1, 2036 
2.14% 
February 1, 2037 
2.15% 
August 2, 2037 
2.16% 
February 1, 2038 
2.17% 
August 1, 2038 
2.12% 
2.  
If the proceeds of the Loan have not been fully withdrawn as of the first Principal 
Payment Date, the principal amount of the Loan repayable by the Borrower on 
each Principal Payment Date shall be determined as follows: 
 
(a) 
To the extent that any proceeds of the Loan have been withdrawn as of 
the first Principal Payment Date, the Borrower shall repay the 
Withdrawn Loan Balance as of such date in accordance with paragraph 1 
of this Schedule. 
 
(b) 
Any amount withdrawn after the first Principal Payment Date shall be 
repaid on each Principal Payment Date falling after the date of such 
withdrawal in amounts determined by the Bank by multiplying the 
amount of each such withdrawal by a fraction, the numerator of which is 
the original Installment Share specified in the table in paragraph 1 of this 
Schedule for said Principal Payment Date (“Original Installment Share”) 
and the denominator of which is the sum of all remaining Original 
Installment Shares for Principal Payment Dates falling on or after such 
date, such amounts repayable to be adjusted, as necessary, to deduct any 
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amounts referred to in paragraph 4 of this Schedule, to which a Currency 
Conversion applies. 
 
3. 
(a) 
Amounts of the Loan withdrawn within two calendar months prior to any 
Principal Payment Date shall, for the purposes solely of calculating the 
principal amounts payable on any Principal Payment Date, be treated as 
withdrawn and outstanding on the second Principal Payment Date 
following the date of withdrawal and shall be repayable on each 
Principal Payment Date commencing with the second Principal Payment 
Date following the date of withdrawal. 
 
(b) 
Notwithstanding the provisions of sub-paragraph (a) of this paragraph, if 
at any time the Bank adopts a due date billing system under which 
invoices are issued on or after the respective Principal Payment Date, the 
provisions of such sub-paragraph shall no longer apply to any 
withdrawals made after the adoption of such billing system.  
 
4. 
Notwithstanding the provisions of paragraphs 1 and 2 of this Schedule, upon a 
Currency Conversion of all or any portion of the Withdrawn Loan Balance to an 
Approved Currency, the amount so converted in the Approved Currency that is 
repayable on any Principal Payment Date occurring during the Conversion 
Period, shall be determined by the Bank by multiplying such amount in its 
currency of denomination immediately prior to the Conversion by either: (i) the 
exchange rate that reflects the amounts of principal in the Approved Currency 
payable by the Bank under the Currency Hedge Transaction relating to the 
Conversion; or (ii) if the Bank so determines in accordance with the Conversion 
Guidelines, the exchange rate component of the Screen Rate.  
 
5. 
If the Withdrawn Loan Balance is denominated in more than one Loan Currency, 
the provisions of this Schedule shall apply separately to the amount denominated 
in each Loan Currency, so as to produce a separate amortization schedule for 
each such amount. 
 
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APPENDIX 
 
Section I. 
Definitions
1. 
“Anti-Corruption Guidelines” means the “Guidelines on Preventing and 
Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA 
Credits and Grants”, dated October 15, 2006. 
2. 
“Category” means a category set forth in the table in Section IV of Schedule 2 to 
this Agreement. 
3. 
“ESPP” means the Environmental and Social Policy and Procedures adopted by 
the Borrower in April, 2006, satisfactory to the Bank, setting forth, inter alia, the 
policies and procedures of carrying out environmental and social assessment of 
activities under the Project, preparing and implementing environmental 
assessment, mitigation and management plans, and, where applicable, 
resettlement and rehabilitation action plans, tribal development plans, and other 
development plans and entitlement frameworks for people adversely affected as a 
result of the implementation of the Project, carrying out consultations, processing 
and redressing grievances, and monitoring related impacts, as such document 
may be revised from time to time with the prior approval of the Bank. 
 
4. 
“Finance Manuals” means the manuals approved by the Borrower in 
 
March, 2006, satisfactory to the Bank, setting forth the overall Project financial 
management arrangements in respect of Project flow of funds, accounting 
policies and procedures, chart of accounts, financial and accounting procedures, 
books of accounts, financial reporting, and internal controls, as the same may be 
revised from time to time with the prior approval of the Bank. 
 
5. 
“Fiscal Year” means the Borrower’s fiscal year, beginning on April 1 of a 
calendar year and ending on March 31 of the following calendar year. 
 
6. 
“General Conditions” means the “International Bank for Reconstruction and 
Development General Conditions for Loans”, dated July 1, 2005 (as amended 
through February 12, 2008), with the modifications set forth in Section II of this 
Appendix. 
 
7. 
“Guarantee Agreement” means the agreement between India and the Bank of 
even date herewith, as the same may be amended from time to time, and such 
term includes all schedules and agreements supplemental to the Guarantee 
Agreement. 
 
8. 
“Memorandum and Articles of Association” means the Memorandum and 
Articles of Association of the Borrower, as amended to the date of this 
Agreement. 
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9. 
“Original Project” means the project described in Schedule 1 of the Loan 
Agreement between the Borrower and the Bank, dated March 28, 2008 (Loan 
No. 4890-IN). 
 
10. 
“Powergrid” (or the “Borrower”) means Power Grid Corporation of India 
Limited, a company registered under the Guarantor’s Companies Act (1956), 
having its registered office at B-9 Qutub Institutional Area, Katwaria Sarai,  
New Delhi – 110016, India. 
 
11. 
“Procurement Guidelines” means the “Guidelines: Procurement under IBRD 
Loans and IDA Credits” published by the Bank in May 2004, and revised in 
October 2006. 
 
12. 
“Procurement Plan” means the Borrower’s procurement plan for the Project, 
dated September 6, 2008, and referred to in paragraph 1.16 of the Procurement 
Guidelines, as applicable, as the same shall be updated from time to time in 
accordance with the provisions of said paragraphs. 
 
Section II.  Modifications to the General Conditions
The modification to the General Conditions is as follows:   
 
Paragraph (l) of Section 7.02 is modified to read: 
 
“Section 7.02. 
Suspension by the Bank 
 
... (l) 
Ineligibility
.
The Bank or the Association has declared the Borrower 
(other than the Member Country) or the Project Implementing Entity ineligible to 
receive proceeds of any financing made by the Bank or the Association or 
otherwise to participate in the preparation or implementation of any project 
financed in whole or in part by the Bank or the Association, as a result of a 
determination by the Bank or the Association that the Borrower or the Project 
Implementing Entity has engaged in fraudulent, corrupt, coercive or collusive 
practices in connection with the use of the proceeds of any financing made by the 
Bank or the Association.”