Project Name SAEL Biomass Energy Project
Project Number 56276-001
Borrower / Company Chattargarh Renewable Energy Private Limited
KTA Power Private Limited
Sardarshahar Agri Energy Private Limited
TNA Renewable Energy Private Limited
VCA Power Private Limited
Country / Economy India
Location Rajasthan
Type or Modality of Assistance
4295 Loan Ordinary capital resources INR 1,517.00 million Approved
4296 Loan Ordinary capital resources INR 1,519.80 million Approved
4297 Loan Ordinary capital resources INR 1,519.80 million Approved
4298 Loan Ordinary capital resources INR 1,519.80 million Approved
4299 Loan Ordinary capital resources INR 1,464.00 million Approved
Operational Priorities OP2: Accelerating progress in gender equality
OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
OP5: Promoting rural development and food security
Sector / Subsector

Energy / Renewable energy generation - biomass and waste

Gender Effective gender mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Infrastructure Finance Division 1
Responsible ADB Officer Mosnier, Zsuzsanna
Project Sponsor(s) SAEL Industries Limited
SAEL Limited
Description The proceeds of the ADB debt financing will be utilized to fund the construction of five biomass power plants with total generation capacity of 74.5-megawatt, utilizing agricultural residue as feedstock, in districts of Bikaner, Churu, Hanumangarh, Jhunjhunu and Sikar in Rajasthan state, India.
Objectives and Scope The project is aligned with the Government of India's target to reach 500 gigawatts of non-fossil energy capacity and meet 50% of cumulative electric power installed capacity from renewable energy sources, thereby reducing the carbon intensity of the economy by 45% by 2030.
Linkage to Country/Regional Strategy The project is consistent with the following operational priorities (OPs) of Strategy 2030: (i) accelerating progress in gender equality (OP 2); (ii) tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability (OP 3); and (iii) promoting rural development and food security OP 5). It contributes to ADB's ambition to provide cumulative climate finance of $100 billion during 2019-2030. By promoting stable power supply and increasing the proportion of renewable energy, the project is aligned with pillar 2 (promote climate-resilient green growth) and pillar 3 (deepen social and economic inclusiveness) of ADB's country partnership strategy for India, 2023-2027. The project has been assessed as being aligned with the Paris Agreement in accordance with the Guidance Note on Implementing Operations' Alignment with the Paris Agreement at ADB and is fully aligned with ADB's Energy Policy, which prioritizes support for renewable energy development.
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The Project has been categorized as B for Environment in compliance with ADB Safeguard Policy Statement (2009) (SPS). Based on the results of the Initial Environmental and Social Examination (IESE) conducted for each biomass power plant and associated facilities, the potential environmental impacts of the projects are limited, site specific, reversible and can be readily addressed through mitigation measures in the Environmental and Social Management Plan (ESMP). The biomass power plants will primarily use mustard stalks as feedstock. The Borrowers and the E&S consultants confirmed that the biomass energy facilities are designed and will be operated to comply with India's emission standards for thermal power plants and these can comply with applicable international good practices. ADB has required the Borrower: the implementation of the agreed ESMPs, the inclusion of procedures in each ESMP for screening and assessing the location of the feedstock collection points and the alignment of the transmission lines and pipelines for potential environmental and social impacts and require each Borrower to prepare and implement commensurate mitigation measures both during the construction and operation; evidence of interim or final ash disposal arrangements; and ESMP implementation reporting from all Borrowers both during construction and operation phases. The report includes the status of compliance with the SPS and applicable national laws, regulations, and international good practices.
Involuntary Resettlement The Project has been categorized as B for involuntary resettlement as a result of the project's planned development of transmission lines. In India private developers have the right to invoke Government support to access privately held land which is an automatic trigger for Involuntary Resettlement consideration under ADB SPS. The borrower has committed to avoiding physical displacement and minimizing economic displacement in its identification of the transmission line alignments for each of the five sites. The borrower has identified the specific alignment and footprint of the towers and ROW and based on these alignments has prepared Resettlement and Livelihood Restoration Plans (RLRP) for four of the five sites, with three of these approved by ADB and the fourth under review. ADB has required that the Borrower only execute land acquisition activities after ADB's approval of the respective RLRP. The five solar plants are on lands that were acquired through willing buyer / seller arrangement. Third party audit of the processes undertaken to acquire the sites; this confirmed that the process was in line with legal requirements and that there are no outstanding payments due or legal claims from land sellers. The borrower will be required to monitor execution of the RLRPs and undertake completion assessment once all compensation is paid and livelihood restoration measures are implemented and considered to have achieve their objectives.
Indigenous Peoples The Project has been categorized as C because none of project components of the five sites will directly or indirectly affect indigenous people (IP) or scheduled tribes (ST). The sites were screened by the borrower's third party specialists who confirmed the absence of IP and ST lands, claims to ancestral domain or use of natural or cultural resources in the project areas.
Stakeholder Communication, Participation, and Consultation SAEL has established formal external stakeholder engagement plans which it uses to engage with external stakeholders across the five sites. As part of ADB's requirement, the SEP was developed prior to construction activities in the project sites and stakeholder engagement activities will be implemented continuously during the construction and throughout the operation of the plants. The Project's Resettlement Plans also include specific provisions for engagement and consultation with households affected by land acquisition and access and these will be used for ongoing consultation and monitoring as land is acquired for the transmission lines. The project also utilizes community grievance mechanisms as part of its engagement with local stakeholders. As construction and land acquisition progresses these tools will be important vehicles to avoid and respond to risks and unintended impacts.
Timetable for assistance design, processing and implementation
Concept Clearance 09 Sep 2022
Credit Committee Meeting -
Approval -
Last PDS Update 15 Apr 2024
 
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Source URL: https://www.adb.org/projects/56276-001/main