Project Data Sheet

Project Data Sheets (PDS) contain summary information on the project or program: Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

PDS Creation Date 11 Jul 2013
PDS Updated as of 29 Sep 2014

Project Name Horticulture Cold Chain Project
Borrower/Equity Investment Name CHAMPION AGRO LIMITED
Country India
Project/Program Number 46943-014
Status Approved
Geographical Location Gujarat
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Sector Agriculture, natural resources and rural development
Subsector Agricultural Production and Markets
Strategic Agendas
Drivers of Change
Gender Equity and Mainstreaming Categories

Project Sponsor

CHAMPION AGRO LIMITED

Financing

Type/Modality of Assistance Approval Number Source of Funding Approved Amount (thousand)
PS7389LIBOR Based Loan
(Documents under Negotiations)
USD 561,189

Summary of Environmental and Social Issues

Environmental Aspects
The potential environmental impacts of the project have been identified and are limited to wastewater and solid waste generation, noise, odor, occupational health and safety, and community safety; and such impacts can be prevented and mitigated using tested and proven measures in accordance with the relevant World Bank Group guidelines for food and beverage processing. The project facilities will be operated in accordance with the provisions of the Food Safety Act, 2012 of India, and will also adopt pollution prevention including energy efficient measures and occupational health and safety practices. Champion Agro has committed to adopt an Environmental and Social Management System (ESMS) including a corrective action plan before ADB's first disbursement.
Involuntary Resettlement
No land acquisition or involuntary resettlement impacts are expected because agricultural products processed and distributed by Champion Agro will be sourced from leased or contracted farmlands. Land required for collection and distribution centers will be purchased on a willing buyer- willing seller principle, so no physical or economic displacement is involved.
Indigenous Peoples
The project will be located mainly in Gujarat. If the impacts on Indigenous Peoples communities are adverse and/or significant, the subproject will be excluded from financing. Thus, the project has no impact on indigenous peoples.

Stakeholder Communication, Participation and Consultation

The consultation and participation processes were carried out with relevant project stakeholders, especially with local farmers, who will be providing agricultural products for Champion Agro. The participation of the beneficiaries is handled by conducting village meetings with representatives and focus group discussions. Further consultation and participation with stakeholders are incorporated in the company s Environment and Social Management System and subproject Initial Environmental Examination.

Description

The project encompasses the development by Champion Agro of cold chain infrastructure facilities for fresh fruits and vegetables. The project will have the following four components: (i) five collection centers, (ii) a controlled atmosphere cold storage facility, (iii) an individually quick frozen facility, and (iv) five distribution centers. The project will support Champion Agro s horticulture business from the collection of fresh fruits and vegetables from farmers in Gujarat to their distribution to corporate clients in large Indian cities and aboard.1

Objectives and Scope

The project will help reduce post-harvest wastage of fruits and vegetables, which is estimated to be as high as 35% in India. Reduction in post-harvest wastage together with better irrigation technologies will contribute to a more efficient use of water resources. The project will also contribute to reducing rural poverty in Gujarat. Champion Agro will indeed help farmers switch to high-value crops, increase their yields, and capture a higher share of the final price paid by the consumer. More than 6,000 farmers are expected to benefit from the project. Finally, the project will contribute to improved nutrition in India. A minimum of 400g of fruits and vegetables per day is recommended for the prevention of chronic diseases as well as for the alleviation of several micronutrient deficiencies. In India, only 15% of the population consumed this daily minimum as of 2005. The project is expected to contribute to an increase in that proportion.

Project Rationale and Linkage to Country/Regional Strategy

Under the Country Partnership Strategy (CPS) for India (2013-2017), agribusiness is one of the sectors to be supported by ADB 's nonsovereign operations: ADB's private sector operations will explore new investments in agribusiness to support the government 's strategy of developing integrated value chains for high-value segments of agriculture and linking small farmers with markets . The draft CPS also insists on the critical need to improve agribusiness infrastructure to reduce post-harvest losses and increase value-adding processing through the aggregation of horticulture produce, post-harvest (e.g. grading, sorting and packaging), storage, and market facilities in a more integrated manner employing an integrated value chain approach . The project is fully aligned with ADB' s agriculture sector strategy. In particular, the Operational Plan for Sustainable Food Security (2009) recommends an expanded partnership with the private sector in order to attract more direct investments in productivity enhancement, agro-processing, agro-retailing and other nonfarm rural business. The project also addresses the operational plan s objective of increasing synergy and value addition in the backward and forward linkages along the food and agriculture value chain. Improved linkages along the value chain enhance productivity, employment opportunities, exports and regional trade, but also food security for the poor in both rural and urban areas.

Outputs and Implementation Progress

Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Status of Development Objectives
Material Changes

Business Opportunities

Date of First Listing
Consulting Services
Procurement and Consulting Notices
http://www.adb.org/projects/46943-014/business-opportunities

Timetable

Concept Clearance 11 Sep 2012
Due Diligence Mission
Investment Committee Meeting 11 Jul 2013
Approval 23 Aug 2013

Contacts and Update Details

Responsible ADB Officer (mlemoine@adb.org)
Responsible ADB Department Private Sector Operations Department
Responsible ADB Divisions Infrastructure Finance Division 1

Links

Project Website http://www.adb.org/projects/46943-014/main
List of Project Documents http://www.adb.org/projects/46943-014/documents