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India: Mytrah Wind and Solar Power Development Project

Nonsovereign (Private) Project | 49241-001 Status: Approved

ADB is proposing to provide a direct loan facility of up to $175 million to a portfolio of special purpose vehicles (SPVs) owned by Mytrah Energy (India) Ltd. (MEIL). ADB's facility will be structured such that a separate loan will be provided to each project SPV on a project finance (limited recourse) basis. The Transaction being financed comprises 476MW of wind projects in four SPVs in Rajasthan, Madhya Pradesh, Andhra Pradesh and Karnataka and 100MW of solar projects in two SPVs in Telangana and Punjab.The six SPVs are:

I. Mytrah Vayu (Som) Pvt. Ltd. Nidhi (90.1MW) and Nipaniya (50MW) wind power projects

II. Mytrah Vayu (Tungabhadra) Pvt. Ltd. Aspiri (200.7MW) wind power project

III. Mytrah Vayu (Ravalpalli) Pvt. Ltd. Ravalpalli (59.8 MW) wind power project

IV. Mytrah Vayu (Savalsang II) Pvt. Ltd. - Savalsang (75.6MW) wind power project

V. Mytrah Aakash Power Private Limited - KM Pally (50MW) solar power project

Project Details

Project Officer
Patil, Avesh Private Sector Operations Department Request for information
Country
  • India
Sector
  • Energy
 
Project Name Mytrah Wind and Solar Power Development Project
Project Number 49241-001
Borrower/Company Mytrah Aadhya Power Private Limited
Mytrah Aakash Power Private Limited
Mytrah Vayu (Ravalpalli) Pvt. Limited
Mytrah Vayu (Savalsang II) Pvt. Limited
Mytrah Vayu (Som) Pvt. Limited
Mytrah Vayu (Tungabhadra) Pvt. Limited
Country India
Location Nation-wide
Type or Modality of Assistance
3379 Loan Ordinary capital resources USD 36.00 million Committed
3380 Loan Ordinary capital resources USD 49.00 million Committed
3381 Loan Ordinary capital resources USD 0.00 Cancelled
3382 Loan Ordinary capital resources USD 0.00 Cancelled
3383 Loan Ordinary capital resources USD 12.59 million Committed
3384 Loan Ordinary capital resources USD 0.00 Cancelled
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Energy / Renewable energy generation - solar - Renewable energy generation - wind

Gender Equity and Mainstreaming No gender elements
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Infrastructure Finance Division 1
Responsible ADB Officer Patil, Avesh
Project Sponsor(s) Mytrah Energy (India) Limited
Description

ADB is proposing to provide a direct loan facility of up to $175 million to a portfolio of special purpose vehicles (SPVs) owned by Mytrah Energy (India) Ltd. (MEIL). ADB's facility will be structured such that a separate loan will be provided to each project SPV on a project finance (limited recourse) basis. The Transaction being financed comprises 476MW of wind projects in four SPVs in Rajasthan, Madhya Pradesh, Andhra Pradesh and Karnataka and 100MW of solar projects in two SPVs in Telangana and Punjab.The six SPVs are:

I. Mytrah Vayu (Som) Pvt. Ltd. Nidhi (90.1MW) and Nipaniya (50MW) wind power projects

II. Mytrah Vayu (Tungabhadra) Pvt. Ltd. Aspiri (200.7MW) wind power project

III. Mytrah Vayu (Ravalpalli) Pvt. Ltd. Ravalpalli (59.8 MW) wind power project

IV. Mytrah Vayu (Savalsang II) Pvt. Ltd. - Savalsang (75.6MW) wind power project

V. Mytrah Aakash Power Private Limited - KM Pally (50MW) solar power project

VI. Mytrah Aadhya Power Private Limited - Mansa (50MW) solar power project

Objectives and Scope The objective is diversification of India's energy mix through the addition of renewable energy capacity, helping the country progress toward its clean energy targets. The project also contributes to mobilize the private sector financing in climate change mitigation and to prioritize private sector operations in clean and renewable energy. ADB has been providing support for clean energy development to meet growing energy demands in a sustainable manner. The project will also contribute to the bank's operational goal of scaling up private sector development and private sector operations in renewable sector.
Status of Development Objectives

The Project has started contributing to its development objectives.

1) Mytrah Vayu (Som) Power Project: 92.8 MW of wind power capacity has been commissioned

2) Mytrah Vayu (Tungabhadra) Power Project: 148.9 MW of wind power capacity has been commissioned

3) Mytrah Aadhya Power Project: 50 MW of wind power capacity has been commissioned

Status of Operation/Construction Execution of facility agreements is complete for 3 SPVs, namely: (i) Mytrah Vayu (Som) Pvt. Ltd.; (ii) Mytrah Aadhya Pvt. Ltd; and (iii) Mytrah Vayu (Tungbhadra) Pvt. Ltd. The 3 SPVs have fully disbursed and are in their operating stage. Delay in COD of partial capacity (27.2 MW) out of 120 MW for Mytrah Vayu (Som) is caused by the delay in the PPA signing by the relevant state agency/authority (Rajasthan discom). The development of Mytrah Aadhya and Mytrah Vayu (Tungbhadra) - Phase 1 for 148.9 MW are complete. Remaining facility has been cancelled.
Linkage to Country/Regional Strategy

The project is aligned with ADB's India country partnership strategy, 2013-2017, which calls for investments in renewable energy development. The project is also fully aligned with ADB's Energy Policy. The policy states that support for renewable energy projects will be prioritized and broadened. In 2013, ADB increased its target of clean energy investments to $2 billion a year from the previous target of $1 billion a year. As

part of its enhanced commitment to finance renewable energy projects, ADB will increase its assistance to renewable energy projects to $6 billion a year by 2020.

Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects The identified sites are not considered to be along a major fly route for migratory birds and there are no known bat populations in their vicinity. Environmental impacts during construction are generally site-specific and reversible. Potential noise and shadow flicker impacts during operations are expected to be within acceptable limits. An environmental and social audit was completed and appropriate measures to address outstanding compliance issues were put in place.
Involuntary Resettlement The loan will fund the expansion of the borrower's wind and solar energy project portfolio in three Indian states. The borrower has no recourse to government expropriation for its land needs. Involuntary physical displacement is therefore not possible and all permanent land acquisition is by voluntary sale on a willing-seller willing-buyer basis. Involuntary economic displacement is possible on subprojects where the borrower has long-term leases on government land that is intermittently used by neighboring villagers as seasonal conditions allow. Restrictions on land use due to wind turbine construction and operation are however typically very limited and impacts are managed through the borrower's ESMS. An audit of the ESMS has been conducted and corrective action will be implemented before first disbursement. The revised ESMS will include a Land Acquisition and Resettlement Framework and ensure that any economic displacement will be managed accordance with local law and ADB SPS.
Indigenous Peoples The borrower's land acquisition procedure includes measures to avoid siting subprojects on land customarily owned or used by Scheduled Tribes (ST). Due diligence for two initial wind subprojects found no distinct and vulnerable ST communities or groups in each subproject impact area. Initial analysis of identified future subprojects shows impacts on ST groups are not expected though this cannot be ruled out in some states. The borrower's ESMS, to be revised before disbursement, will include measures to minimize and manage any potential unanticipated and unavoidable impacts on ST groups. For each subproject, the borrower will conduct an impact assessment and management plans will be implemented by capable personnel.
Stakeholder Communication, Participation, and Consultation The borrower will manage participation through its enhanced ESMS for subproject related impacts and through its CSR Policy and plans for participatory interventions in the broader subproject impact areas that are part of legislative requirements. The ESMS will include requirements for participatory community engagement in subproject impact identification and mitigation management as well as broader stakeholder engagement requirements regarding information disclosure. CSR activity in subproject impact areas is primarily based on participatory rural appraisal techniques that allow communities to define their needs and develop sustainable solutions that can be supported by the borrower. Both approaches are implemented by independent consultants to the borrower who is responsible for monitoring and reporting on implementation progress to both internal and external stakeholders.
Timetable for assistance design, processing and implementation
Concept Clearance 08 Jun 2015
Credit Committee Meeting 25 Jan 2016
Approval 22 Mar 2016
Last PDS Update 28 Mar 2019

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.

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

None currently available.

Related Publications

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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.

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