The proposed $505 million sovereign-guaranteed Solar Rooftop Investment Program (SRIP) is a multitranche financing facility, consisting of $500 million financial intermediation loans and a $5 million capacity development technical assistance. As requested by the Government of India, Punjab National Bank is the borrower, and the India provided a sovereign guarantee to the Asian Development Bank for the SRIP. The SRIP intends to primarily finance large solar rooftop systems on industrial and commercial buildings on standalone or aggregated basis. Punjab National Bank's loans to subborrowers is priced based on Punjab National Bank's cost of funds and subproject-specific risks. The proposed accompanying technical assistance for $5 million is critical to integrate the building blocks of the Government of India's sector development initiative to ensure a viable market demand, by strengthening (i) Punjab National Bank's institutional capacity, and (ii) certain market development elements.
| Project Name | Solar Rooftop Investment Program | ||||||||||
| Project Number | 49419-001 | ||||||||||
| Country | India |
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| Project Status | Active | ||||||||||
| Project Type / Modality of Assistance | Loan Technical Assistance |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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| Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development Knowledge solutions Partnerships Private sector development |
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| Sector / Subsector | Finance / Infrastructure finance and investment funds |
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| Gender Equity and Mainstreaming | Some gender elements | ||||||||||
| Description | The proposed $505 million sovereign-guaranteed Solar Rooftop Investment Program (SRIP) is a multitranche financing facility, consisting of $500 million financial intermediation loans and a $5 million capacity development technical assistance. As requested by the Government of India, Punjab National Bank is the borrower, and the India provided a sovereign guarantee to the Asian Development Bank for the SRIP. The SRIP intends to primarily finance large solar rooftop systems on industrial and commercial buildings on standalone or aggregated basis. Punjab National Bank's loans to subborrowers is priced based on Punjab National Bank's cost of funds and subproject-specific risks. The proposed accompanying technical assistance for $5 million is critical to integrate the building blocks of the Government of India's sector development initiative to ensure a viable market demand, by strengthening (i) Punjab National Bank's institutional capacity, and (ii) certain market development elements. SRIP's value addition, inclusive of $330 million from ordinary capital resources and $170 million from Clean Technology Fund, is to facilitate India's transition to a low carbon economy and therefore contribute to the climate change goal of reducing greenhouse gas emissions by 441,700 tons of carbon dioxide equivalent annually, or about 11 million tons of carbon dioxide equivalent over the typical 25-year lifetime of rooftop solar systems. | ||||||||||
| Project Rationale and Linkage to Country/Regional Strategy | The Government of India (government) plans to expand the country's solar rooftop capacity by 40 gigawatts (GW) by 2022. To fuel India's economic growth, its power system will have to expand rapidly over the next decade. This is also to maintain national energy security and expand energy access to all people in India. To ensure environmental sustainability, the government places a high priority on renewable energy development. India's National Action Plan on Climate Change (prepared in 2008) outlines existing and future policies and programs addressing climate mitigation and adaptation. Under the plan, the government launched the Jawaharlal Nehru National Solar Mission (JNNSM) in 2010 to add 20 GW of grid connected solar energy by 2022. On 17 July 2015, the Union Cabinet approved a revised JNNSM proposal to increase the original 20 GW solar energy target to 100 GW by 2022, including 40 GW of rooftop solar energy generation. The proposed Solar Rooftop Investment Program would therefore (i) establish a solar rooftop financing facility at Punjab National Bank to provide dedicated debt financing to help India meet its 40 GW solar rooftop capacity target by 2022; and (ii) provide associated institutional capacity and market development support, leading to a pipeline of bankable subprojects. | ||||||||||
| Impact | Energy security provided to all in an environmentally sustainable manner, and renewable energy developed | ||||||||||
| Project Outcome | |
|---|---|
| Description of Outcome | Solar rooftop capacity in India increased. |
| Progress Toward Outcome | 29 subprojects of 5.1 MW capacity have been approved for ADB financing. Further 9 projects of 9 MW have been sanctioned by PNB and pipeline of about $140 million of RESCOs deals is under consideration by PNB. |
| Implementation Progress | |
| Description of Project Outputs | Debt funding to the solar rooftop sector increased PNB institutional capacity improved Solar rooftop market infrastructure and bankable subproject pipeline developed |
| Status of Implementation Progress (Outputs, Activities, and Issues) | 29 subprojects of 5.1 MW capacity have been approved for ADB financing. Further 9 projects of 9 MW have been sanctioned by PNB. PNB institutional setup comprises of one AGM and one Senior Manager under the supervision of one GM. PNB PMU team is being supported by 6 individual consultants and 2 consulting firms through associated TA. Demand aggregation and development of solar rooftop portal in 8 states/UTs assigned by MNRE, is ongoing through 2 consulting firms engaged under associated TA 9187. Pipeline of about $140 million of RESCOs deals is under consideration by PNB. Training programs and workshops are being conducted by PNB for creating awareness and developing subproject pipeline. |
| Geographical Location | Nation-wide |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | Categorized as FI, treated as C. No separate environment and social management system is required. |
| Involuntary Resettlement | Categorized as FI, treated as C. No separate environment and social management system is required. |
| Indigenous Peoples | Categorized as FI, treated as C. No separate environment and social management system is required. |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | Extensive due diligence and consultation have been conducted. |
| During Project Implementation | Due diligence and consultation is under progress. |
| Business Opportunities | |
|---|---|
| Consulting Services | All procurement to be financed under the multitranche financing facility would be carried out in accordance with Asian Development Bank (ADB)'s Procurement Guidelines (2015, as amended from time to time), following stated eligibility criteria. ADB encourages Punjab National Bank to require its subborrowers to adopt internationally competitive bidding procedures to the extent possible when the amount of the investment is unusually large and economy and efficiency can be gained through such procedures. For procurement of goods and services to be financed by subloans from the ADB loan, Punjab National Bank would ensure that prices are reasonable and that relevant factors, e.g., time of delivery, efficiency, reliability, suitability for the subproject, and (for consulting services) quality and competence are taken into account. Solar panels procured under the India domestic content requirement would not be eligible for financing under the Solar Rooftop Investment Program. ADB loan proceeds would be disbursed in accordance with ADB's Loan Disbursement Handbook (2015, as amended from time to time). ADB may provide Punjab National Bank with United States dollars as the currency of payment. |
| Procurement | All procurement to be financed under the multitranche financing facility would be carried out in accordance with Asian Development Bank (ADB)'s Procurement Guidelines (2015, as amended from time to time), following stated eligibility criteria. ADB encourages Punjab National Bank to require its subborrowers to adopt internationally competitive bidding procedures to the extent possible when the amount of the investment is unusually large and economy and efficiency can be gained through such procedures. For procurement of goods and services to be financed by subloans from the ADB loan, Punjab National Bank would ensure that prices are reasonable and that relevant factors, e.g., time of delivery, efficiency, reliability, suitability for the subproject, and (for consulting services) quality and competence are taken into account. Solar panels procured under the India domestic content requirement would not be eligible for financing under the Solar Rooftop Investment Program. ADB loan proceeds would be disbursed in accordance with ADB's Loan Disbursement Handbook (2015, as amended from time to time). ADB may provide Punjab National Bank with United States dollars as the currency of payment. |
| Responsible ADB Officer | Bhatt, Jigar Arvindbhai |
| Responsible ADB Department | South Asia Department |
| Responsible ADB Division | India Resident Mission |
| Executing Agencies |
Punjab National Bank 7, Bhikhaiji Cama Place |
| Timetable | |
|---|---|
| Concept Clearance | 18 Apr 2016 |
| Fact Finding | 24 May 2016 to 26 May 2016 |
| MRM | 20 Jul 2016 |
| Approval | 30 Sep 2016 |
| Last Review Mission | - |
| Last PDS Update | 27 Jun 2019 |
MFF Facility Concept 0095-IND
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 500.00 | Cumulative Contract Awards | |||
| ADB | 330.00 | - | 0.00 | 0.00 | % |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 170.00 | - | 0.00 | 0.00 | % |
TA 9187-IND
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 30 Sep 2016 | 25 Jul 2017 | 25 Jul 2017 | 31 Jan 2022 | - | - |
| Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
|---|---|---|---|---|---|---|---|---|
| ADB | Cofinancing | Counterpart | Total | Date | Amount | |||
| Gov | Beneficiaries | Project Sponsor | Others | |||||
| 0.00 | 5,000,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 5,000,000.00 | 30 Sep 2016 | 980,747.83 |
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 Rooftop Investment Program: Facility Administration Manual | Facility Administration Manual | Sep 2016 |
| Solar Rooftop Investment Program: Report and Recommendation of the President | Reports and Recommendations of the President | Sep 2016 |
| Solar Rooftop Investment Program: Framework Financing Agreement | Framework Financing Agreement | Aug 2016 |
| Solar Rooftop Investment Program: Project Data Sheet (हिन्दी) | Translated PDS | May 2016 |
| Solar Rooftop Investment Program: Initial Poverty and Social Analysis | Initial Poverty and Social Analysis | Apr 2016 |
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.
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ADB to Provide India $500 Million for Solar Rooftop Systems
ADB is set to provide $500 million in financing for rooftop solar systems that will help the Indian government expand energy access using renewable energy.
Tenders
| Tender Title | Type | Status | Posting Date | Deadline |
|---|---|---|---|---|
| Project Management Consultant | Individual - Consulting | Closed | 14 Mar 2019 | 20 Mar 2019 |
| Environment Safeguard Consultant | Individual - Consulting | Closed | 16 Jan 2019 | 22 Jan 2019 |
| Strategy and Risk Consultant | Individual - Consulting | Closed | 04 Oct 2018 | 10 Oct 2018 |
| Legal Consultant | Individual - Consulting | Closed | 07 Sep 2018 | 14 Sep 2018 |
| Firm for Development of Solar Rooftop Portal | Firm - Consulting | Closed | 07 Aug 2018 | 24 Aug 2018 |
| Consultant firm for Capacity Development | Firm - Consulting | Closed | 07 Aug 2018 | 24 Aug 2018 |
| Project Technical Consultant | Individual - Consulting | Closed | 22 Nov 2017 | 28 Nov 2017 |
| Solar Rooftop Technical Lead | Individual - Consulting | Closed | 22 Nov 2017 | 28 Nov 2017 |
| Solar Rooftop Projects Specialist | Individual - Consulting | Closed | 22 Nov 2017 | 28 Nov 2017 |
| Project Management Consultant | Individual - Consulting | Closed | 07 Sep 2017 | 13 Sep 2017 |
| Solar Rooftop Technical Analyst | Individual - Consulting | Closed | 07 Sep 2017 | 13 Sep 2017 |
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Contractor Address | Executing Agency | Contract Description | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|---|---|
| Capacity Development | Technical Assistance 9187 | 18 Dec 2018 | KPMG ADVISORY SERVICES PVT. LTD.(INDIA) in association with Idam Infrastructure Advisory Private Limited(INDIA) | LODHA EXCELLUS,APOLLO MILLS CMPD,NM JOSH HALAXMI,MUMBAI 400011/Kamala Mills Compo Senapati Bapat Marg, Lower Parel Mumbai | Punjab National Bank | Consulting Services | 589,074.00 | — |
| Capacity Development | Technical Assistance 9187 | 18 Dec 2018 | Idam Infrastructure Advisory Private Limited(INDIA) | 801, Crystal Plaza,, 158 CST Road, Kalin ruz (East) Mumbai, India, Maharashtra 40 | Punjab National Bank | Consulting Services | 186,607.00 | — |
Procurement Plan
None currently available.