India : Mytrah Wind and Solar Power Development Project
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
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Project Officer
Patil, Avesh
Private Sector Operations Department
Request for information -
Approval Date
22 March 2016 -
Country/Economy
India -
Modality
-
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 |
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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 | 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 |
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| 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 |
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| 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: 120.1 MW of wind power capacity has been commissioned with 27.1 MW capacity selling power under open access mode 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 | The loans towards 3 SPVs (Mytrah Vayu (Som) Pvt. Ltd. Nidhi (90.1MW) and Nipaniya (30 MW) wind power projects; Mytrah Vayu (Tungabhadra) Pvt. Ltd. Aspiri (148.9MW) wind power project and Mytrah Aadhya Power Private Limited - Mansa (50MW) solar power project) have been fully disbursed. Remaining facility has been cancelled. The above 3 SPVs are in their operating stage. JSW Neo Energy Limited (a subsidiary of JSW Energy Limited) acquired Mytrah Vayu (Som) Pvt. Ltd and Mytrah Aadhya Power Private Limited in March 2023 and Mytrah Vayu (Tungabhadra) Pvt. Ltd in June 2023. The loan towards Mytrah Aadhya Power Private Limited - Mansa (50MW) solar power project) was prepaid by the borrower in May 2023. |
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| 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 (2009). 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 | |
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| Environmental Aspects | The environmental impacts for both wind and solar power projects were generally site-specific, largely reversible, and can readily be addressed through mitigation measures. The identified sites were not located in any ecologically sensitive areas. The sites are not along major fly migratory path for birds and bats. All construction and operation impacts and risks have been addressed through the implementation of measures identified in the environmental management plans. Key construction impacts included vegetation clearance, noise, vibration, traffic, waste generation, fugitive dust emissions, and community and occupational health and safety risks. Key operation impacts include loss of visual amenity, waste generation, and community and occupational health and safety risks. Potential noise and shadow flicker impacts were expected to be within limits. Monitoring will determine the need for additional management measures. |
| 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 was conducted. The revised ESMS includes a Land Acquisition and Resettlement Framework and ensures that any economic displacement will be managed accordance with local law and ADB SPS. During the XARR process, it was confirmed that all project sites were acquired either thru a willing-seller willing-buyer basis or through or willing -lessor willing lessee of private land but were unoccupied or unused. The construction and operations of all project sites did not result to any physical and economic displacement. |
| 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 borrowers revised ESMS includes 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. During the XARR process, it was validated that the measures identified by the client to ensure that the project will not have an impact to any STs were implemented satisfactorily. The construction and operations of all project sites did not encroach on lands owned or used by STs and did cause any impacts to STs. |
| 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 includes 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. Face to face community consultations became limited during the height of the pandemic due to restrictions, but the company adjusted by conducting virtual consultations. The company implemented and continued its CSR activities, that were identified according to the community needs, that focuses on livelihood support projects, health-related projects, tree planting and other environmental projects, support to athletes projects, and education support projects. The client also donated essentials, grocery packs, and PPEs to people in various states who are greatly affected by the COVID-19 pandemic. |
| Timetable for assistance design, processing and implementation | |
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| Concept Clearance | 08 Jun 2015 |
| Credit Committee Meeting | 25 Jan 2016 |
| Approval | 22 Mar 2016 |
| Last PDS Update | 08 Aug 2023 |
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 |
|---|---|---|
| Mytrah Wind and Solar Power Development Project: Extended Annual Review Report | Extended Annual Review Reports | Dec 2021 |
| Mytrah Wind and Solar Power Development Project: Project Data Sheet (हिन्दी) | Translated PDS | Feb 2016 |
| Special Purpose Vehicles Owned by Mytrah Energy (India) Limited for the Mytrah Wind and Solar Power Development Project: Report and Recommendation of the President | Reports and Recommendations of the President | Feb 2016 |
| Mytrah Wind and Solar Power Development Project: Initial Poverty and Social Analysis | Initial Poverty and Social Analysis | Jun 2015 |
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
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.
ADB Loans to Mytrah Energy Will Lift India’s Clean Power Output
ADB has approved loans of up to $175 million for private renewable energy development to Mytrah Energies (India) Ltd (MEIL) to help develop wind and solar power projects generate up to 1,200 gigawatt-hours of clean energy a year.