India : Solar and Wind Power Development Project
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.
Project Details
-
Project Officer
Taneja, Anshukant
Private Sector Operations Department
Request for information -
Country/Economy
India -
Modality
| Project Name | Solar and Wind Power Development Project | |||||
| Project Number | 47920-014 | |||||
| Borrower / Company | Welspun Renewables Energy Limited |
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| Country / Economy | India |
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| Location | Nation-wide | |||||
| Type or Modality of Assistance |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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| Drivers of Change | Private sector development |
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| Sector / Subsector | Energy / Renewable energy generation - solar - Renewable energy generation - wind |
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| Gender | ||||||
| Responsible ADB Department | Private Sector Operations Department | |||||
| Responsible ADB Division | Portfolio Management Division, PSOD | |||||
| Responsible ADB Officer | Taneja, Anshukant | |||||
| Project Sponsor(s) | WELSPUN ENERGY LIMITED |
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| 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. |
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| 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. |
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| Status of Development Objectives | n/a | |||||
| Status of Operation/Construction | As of 31 March 2014, the company had 328 MW of operational projects (308 MW of solar power projects and 20 MW of wind power projects). ADB's investments will help the company reach at least 600 MW of operational projects by March 2016. | |||||
| Material Changes | n/a | |||||
| 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, 20132017, which calls for 'investments in renewable energy development, particularly solar. |
| 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 |
| Credit Committee Meeting | 06 Nov 2013 |
| Approval | 12 Dec 2013 |
| PDS Creation Date | 15 Jul 2013 |
| Last PDS Update | 23 Sep 2014 |
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.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
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.
| Title | Document Type | Document Date |
|---|---|---|
| Solar and Wind Power Development Project: Extended Annual Review Report | Extended Annual Review Reports | Oct 2019 |
| 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 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.
None currently available.
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
None currently available.
The Access to Information Policy (AIP) 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.
Requests for information may also be directed to the InfoUnit.