Nonsovereign Project | 44932-044 Status: Approved



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Project Number 44932-044
Country India
Location The project is across the six locations in Gujarat state which are generally within a 150 kilometers (km) radius of the cities of Ahmedabad, Porbandar, and Rajkot.
Approval Number 7364/2909-001
Type or Modality of Assistance
7364/2909-001 Loan US$ 6.83 million Approved
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector

Energy - Renewable energy generation - solar

Gender Equity and Mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Shinya Kondo
Project Sponsor(s) Hindustan Cleanenergy Limited
Objectives and Scope The project constructed 25 megawatts (MW) of solar photovoltaic power project at villages Kamalpur and Rajpar, District Surendranagar in the state of Gujarat. The project is designed to promote sustainable growth by diversifying energy mix in India through the addition of renewable energy capacity. The development impact of the project also includes environmental benefits through more efficient use of indigenous renewable energy resources with almost no emission of pollutants or greenhouse gases. The building of the project will help prove the feasibility of utility-scale solar power projects in India and the operational performance in a location where substantial development in solar power is planned during 2012 2017.
Linkage to Country/Regional Strategy The project supports two of the five core operational areas of Strategy 2020 infrastructure and environment. The project is aligned with the India country partnership strategy (CPS), 2009 2012. One of the four strategy pillars of the CPS is to support inclusive and environmentally sustainable growth through continued focus on infrastructure development and enhanced focus on renewable energy. The project is consistent with one key outcome indicator of the CPS, which targets an addition of at least 70 MW of solar power generation through ADB assistance by 2012.
Status of Development Objectives The project is meeting the development objectives as stated above.
Material Changes -

Safeguard Categories

Environment B
Involuntary Resettlement C
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects The project is classified category B for environment due to limited adverse environmental impacts which are site specific, largely reversible and can be readily addressed through mitigation measures. The project site is not located in or near a sensitive ecosystem. Review of the secondary literature and site visits confirmed the absence of unique or ecologically significant flora and fauna. The land acquired for the project is totally private land and has been purchased on a voluntary basis (willing seller-willing buyer basis) from the land owners. The land purchased for the project is classified as agricultural land but the fertility of the land has been degraded over a period of time due to problem of saltwater ingression in the area. The main project associated impacts are associated with clearing of shrub vegetation, waste management and management of labor camps at the site. Moreover, most of the impacts are limited to the construction phase and are temporary in nature. Adequate mitigation actions are undertaken in line with management and monitoring of a set of recommended mitigation measures. Regular monitoring of the recommended mitigation measures shall also be carried out during the implementation phase of the project.
Involuntary Resettlement The project is classified category C for involuntary resettlement. The total land available for the project is 74.61 hectares (ha). The land acquired for the project is total private land and has been purchased on a voluntary basis (willing seller willing buyer basis) from the land owners. The sale of land was an opportunity to earn income from an otherwise unproductive land. The payment provided against the land purchased has helped farmers to find alternative land in a more fertile area or start an alternate livelihood. The solar power plant will be using the following associated facilities for the project: access roads, transmission lines and sub-station. The project will utilize the existing village road; no new roads will be built as part of this project.
Indigenous Peoples The project is categorized C with respect to indigenous people. There were no permanent or temporary inhabitants dwelling on the site as confirmed by interviews with the local community/village residents during the site visit. Also, the land where the Project's solar power generation facility is being constructed is not owned, used, occupied, or claimed as ancestral domain or asset of any tribal groups.
Stakeholder Communication, Participation, and Consultation Stakeholder consultations were held with the resident of the villages where Responsive power plant is located. During public consultation meetings, villages were informed about proposed project, development prospects, project impacts and measures to mitigate possible negative impacts. The prospects of improving social and economic status of the region as a result of a successful project implementation as well as corporate social responsibility (CSR) activities of the Company were also discussed. The CSR activities proposed by the Company and to be taken up during the operational phase of the project include: solar light for temple; assistance for village schools; transportation facility; women empowerment programs; and drinking water facility. During site visit in February 2012, discussions were undertaken on an informal basis with a group of 7-8 community members from the villages who confirmed that they were made aware of the project. They indicated their satisfaction with the project which will bring more jobs to the village and opportunities to set up small businesses for construction and operational workers.

Timetable for assistance design, processing and implementation

Concept Clearance 02 Aug 2010
Due Diligence 09 Feb 2012
Credit Committee Meeting 13 Aug 2012
Approval 18 Sep 2012
PDS Creation Date 27 Mar 2013
Last PDS Update 29 Sep 2014

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Evaluation Documents See also: Independent Evaluation

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