India: Gujarat Solar Power Transmission Project

Sovereign Project | 44431-013 Status: Approved


The proposed project will develop the transmission infrastructure for evacuation of power in a reliable manner from the solar power generation plants to be located in the 2,500 hectares Charanka solar park located in Patan district of Gujarat. The solar park will site over 500 MW of both solar photovoltaic (PV) and concentrated solar power (CSP) plants.

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Project Name Gujarat Solar Power Transmission Project
Project Number 44431-013
Country India
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2778-IND: Gujarat Solar Power Transmission Project
Ordinary capital resources US$ 100.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Energy - Renewable energy generation - solar

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The proposed project will develop the transmission infrastructure for evacuation of power in a reliable manner from the solar power generation plants to be located in the 2,500 hectares Charanka solar park located in Patan district of Gujarat. The solar park will site over 500 MW of both solar photovoltaic (PV) and concentrated solar power (CSP) plants.
Project Rationale and Linkage to Country/Regional Strategy

India is bestowed with solar irradiation ranging from 4 to 7 kWh/square meter/day across the country, with western and southern regions having higher solar incidence. With rapid growing electricity demand, availability of land and increasing reliance on imported sources of fossil fuel, India has initiated steps to tap into and develop the large potential for solar energy based power generation. In 2010, the GOI launched the Jawaharlal Nehru National Solar Mission (JNNSM) to facilitate extensive solar power development. Achieving the ambitious target for 2022 of 20,000 MW will be dependent on the lessons identified during the implementation of the first two phases, which if successful, could lead to conditions of grid-competitive solar power. The transition to mainstreaming solar energy could be appropriately scaled up through capacity development of all the stakeholders related to issues of technology, finance, project management and policy development. JNNSM envisages setting up utility scale solar power generation plants through the promotion and establishment of solar parks with dedicated infrastructure by state governments, among others, the governments of Gujarat (GOG) and Rajasthan (GOR).

GOG, taking advantage of the favorable policy regimes and high solar irradiation in the state, launched the Solar Power Policy in 2009 and proposes to establish a number of large scale solar parks starting with the Charanka solar park in Patan district in the sparsely populated northern part of the state. The development of solar parks will streamline the project development timeline by letting government agencies undertake land acquisition and necessary permits, and provide dedicated common infrastructure for setting up solar power generation plants largely in the private sector. This approach will facilitate the accelerated installation of private sector solar power generation capacity reducing costs by addressing issues faced by stand alone projects. Common infrastructure for the solar park include site preparation and leveling, power evacuation, availability of water, access roads, security and services. In parallel with JNNSM, the Gujarat Electricity Regulatory Commission (GERC) announced feed-in-tariff to mainstream solar power generation which will be applied for solar power generation plants in the solar park and GOG launched the Solar Power Policy 2009 to meet the objective. Gujarat Power Corporation Limited (GPCL) is the responsible agency for developing the solar park of 500 megawatts and will lease the lands to the project developers to generate solar power. Gujarat Energy Transmission Corporation Limited (GETCO), with the mandate to develop transmission infrastructure in Gujarat is one of the Executing Agencies for the Project and will develop the transmission evacuation from the identified interconnection points with the solar developer. ADB funds to GOI will be on-lent to GETCO. Connection from the solar power plant to the interconnection point would be funded by the developer.

5. In May 2010, ADB announced its Asia Solar Energy Initiative (ASEI) to catalyze 3,000 megawatts of solar power generation projects from 2010 to 2013 in ADB developing member countries. As part of ASEI, ADB is taking a holistic approach under the project to catalyze development of the innovative public-private partnership (PPP) model of 500 megawatts solar park (17% of ASEI target) from public and private sector windows. ADB through TA 7099: Integrated Renewable Energy Development Program supported the development of the commercial agreements between solar power developers and power purchasers under the JNNSM. ADB also processed a guarantee facility to commercial banks to lend private sector solar developers. Through development of the power evacuation line from the solar park, ADB will facilitate private sector participation and develop a model that can be replicated to scale up solar power in a significant manner in India.

Impact Large-scale development of reliable solar power projects in a cost-effective manner in India
Project Outcome
Description of Outcome Development of reliable solar power transmission infrastructure for the successful operation of the solar park
Progress Toward Outcome Implementation in progress.
Implementation Progress
Description of Project Outputs

Physical Investment

1. The procurement, installation, and commissioning of the transmission system and associated facilities for the Charanka solar park

Non-Physical Investment

2. Vocational training for skilled employment

3. Energy-based livelihood enhancement

Status of Implementation Progress (Outputs, Activities, and Issues)

1. All contracts awarded and implementation is ongoing.

2. GETCO is in complete coordination with Vocation training initiatives taken by Energy & Petrochemical department with the support of GSES India Sustainable Energy Pvt. Ltd.

Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects GETCO is undertaking the Project in accordance with ADB's Safeguard Policy Statement 2009. Project Management Unit (PMU) has already been set up and is responsible for coordinating and implementing the project inter alia all social and environmental activities. The Social and Environmental Monitoring reports submitted by EA have been uploaded in ADB website. Updated Social and Environmental Monitoring report is under discussion.
Involuntary Resettlement GETCO is monitoring the project''s overall environmental and social performance as per the terms and conditions specified in Section IX (Safeguards) of the Project Administration Manual (PAM).
Indigenous Peoples No indigenous people are expected to be affected. This is reflected in the category C classification for indigenous people.
Stakeholder Communication, Participation, and Consultation
During Project Design During Project preparation, consultations were held with the concerned Government officials.
During Project Implementation Public consultation with all stakeholders will continue throughout implementation of the project.
Business Opportunities
Consulting Services Not required.
Procurement All procurement to be financed under the loan will be carried out in accordance with ADB's Procurement Guidelines (2010, as amended from time to time). Advance procurement action has been approved. GOG and GETCO have been advised that approval of advance procurement does not commit ADB to finance the project. The transmission lines outside the solar park, the substations and the transmission cables within the solar park will be procured following international competitive bidding procedures.
Responsible ADB Officer Jyotirmoy Banerjee
Responsible ADB Department South Asia Department
Responsible ADB Division India Resident Mission
Executing Agencies
Government of Gujarat
Energy and Petrochemicals Department
Block 5, Secretariat Gandhinarg 392010,
Gujarat Energy Transmission Corporation Limited
Sardar Patel Vidyut Bhavan, Race Course,
Vadodara- 390 007
Concept Clearance 20 Jan 2011
Fact Finding 23 Mar 2011 to 29 Mar 2011
MRM 27 Apr 2011
Approval 12 Sep 2011
Last Review Mission -
Last PDS Update 07 Sep 2015

Loan 2778-IND

Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Sep 2011 27 Feb 2012 26 Jun 2012 31 Mar 2015 31 Dec 2016 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 133.69 Cumulative Contract Awards
ADB 100.00 12 Sep 2011 69.33 0.00 87%
Counterpart 33.69 Cumulative Disbursements
Cofinancing 0.00 12 Sep 2011 43.96 0.00 55%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - Satisfactory - Satisfactory

Safeguard Documents

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