India: Solar and Wind Power Development Project

Nonsovereign Project | 47920-014

Summary

Welspun Renewables Energy Limited (WREL) is one of the leading solar power developers in India. The

company has 30 MW of operational solar projects, 50 MW under construction, and another 610 MW in

pipeline for implementation over 2013-2015. The project involves the funding of WREL's equity injection

in the solar projects that will reach financial close in 2013 72014; in the form of compulsory convertible

debentures (CCD) in WREL. This will be ADB's first mezzanine investment in the renewable space in

India, since the CCD instrument will be structured to fit in-between project-level senior secured debt and

WREL's equity in the cash waterfall and from a risk-return perspective. This innovative, financing is

intended to have a demonstration effect and help attract more much-needed growth capital in the Indian

solar sector. The deal team is in discussion with co-investors that may join ADB in this investment.

Latest Project Documents

Consulting Notices

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Project Name Solar and Wind Power Development Project
Project Number 47920-014
Borrower/Company WELSPUN RENEWABLES ENERGY LIMITED
Country India
Location
Approval Number 7400
Type or Modality of Assistance
7400 Equity Investment USD 50.00 million Committed
Strategic Agendas
Drivers of Change
Sector / Subsector For classification - For classification
Gender Equity and Mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Anshukant Taneja
Project Sponsor(s) WELSPUN ENERGY LIMITED
Description

Welspun Renewables Energy Limited (WREL) is one of the leading solar power developers in India. The

company has 30 MW of operational solar projects, 50 MW under construction, and another 610 MW in

pipeline for implementation over 2013-2015. The project involves the funding of WREL's equity injection

in the solar projects that will reach financial close in 2013 72014; in the form of compulsory convertible

debentures (CCD) in WREL. This will be ADB's first mezzanine investment in the renewable space in

India, since the CCD instrument will be structured to fit in-between project-level senior secured debt and

WREL's equity in the cash waterfall and from a risk-return perspective. This innovative, financing is

intended to have a demonstration effect and help attract more much-needed growth capital in the Indian

solar sector. The deal team is in discussion with co-investors that may join ADB in this investment.

Objectives and Scope

ADB's assistance will:

(i) Support the government's policy to develop renewable energy sources;

(ii) Support a local renewable energy sponsor with good track record;

(iii) Catalyze private equity investment and facilitate a future IPO.

Linkage to Country/Regional Strategy The project is consistent with ADB's Strategy 2020. It relates to two of the strategy's five core pillars: infrastructure and environment. The strategy calls for ADB support to clean energy development to meet growing energy demands in a sustainable manner. The project will also contribute to ADB's operational goal of scaling up private sector development. The project is aligned with the India country partnership strategy, 2013 2017, which calls for investments in renewable energy development, particularly solar.
Status of Development Objectives n/a
Material Changes n/a
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The proposed equity investment is considered as general corporate finance in accordance with ADB's Safeguard Policy Statement (2009); it is classified category B for environment and category C for involuntary resettlement and indigenous peoples. Although solar and wind power projects involve potential environmental impacts during construction and operation (e.g. potential water and land pollution), these impacts are site-specific, reversible and can be mitigated using tested mitigation measures. As required under the Safeguard Policy Statement, a corporate safeguards audit was conducted during due diligence. A corrective action plan which describes gap-filling measures at the corporate and project level was prepared based on the audit findings. WREL will be required to adopt an environmental and social management system (ESMS) satisfactory to ADB prior to ADB's investment. To ensure adequate implementation of its ESMS, WREL has agreed to develop its capacity to oversee the ESMS implementation at the corporate level and at the project level.
Involuntary Resettlement -
Indigenous Peoples -
Stakeholder Communication, Participation, and Consultation n/a
Timetable for assistance design, processing and implementation
Concept Clearance 22 Jul 2013
Due Diligence
Credit Committee Meeting 06 Nov 2013
Approval 12 Dec 2013
PDS Creation Date 15 Jul 2013
Last PDS Update 23 Sep 2014
Title Document Type Document Date
Solar and Wind Power Development Project: Project Data Sheet (हिन्दी) Translated PDS Jun 2014
Solar and Wind Power Development Project Reports and Recommendations of the President Nov 2013
Solar and Wind Power Development Project Initial Poverty and Social Analysis Nov 2013

Safeguard Documents

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No documents found.

Evaluation Documents

See also: Independent Evaluation

No documents found.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

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