India: Solar Rooftop Investment Program

Sovereign Project | 49419-001

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 Details

  • Project Officer
    Bhatt, Jigar Arvindbhai
    South Asia Department
    Request for information
  • Country
    India
  • Modality
    • Loan
    • Technical Assistance
  • Sector
    • Finance

Related Projects

Project Name Solar Rooftop Investment Program
Project Number 49419-001
Country India
Project Status Active
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
MFF Facility Concept 0095-IND: Solar Rooftop Investment Program
Ordinary capital resources US$ 330.00 million
Clean Technology Fund US$ 170.00 million
TA 9187-IND: Solar Rooftop Investment Program
Clean Technology Fund US$ 5.00 million
MFF Facility Concept: Solar Rooftop Investment Program
World Bank (IBRD) US$ 647.90 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Finance / Infrastructure finance and investment funds
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 88 subprojects of 28.8 MW capacity have been approved under ADB financing.
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)

88 Subprojects have been approved for financing by PNB.

PNB has setup PMU at its Headquarters. The PMU is supported by consultants from ADB.

Out of net loan amount of $9.5M, $7.3M has been liquidated, and $1.5M is being submitted for liquidation. Sensitization programs in 16 states have been conducted by PNB for potential customers, as well as field functionaries at more than 10 Zonal HQs. Advertisements in state level /regional newspapers across 16 states were published. Marketing and awareness programs are being conducted for new Borrower to support in bankable subprojects pipeline development. The financing scheme has already been uploaded on PNB and MNRE websites. Consulting firm has been recruited and mobilized for designing specific web portal and portal has been finalized in consultation with PNB. Through TA 9187, various capacity development programs and training have been conducted for State Nodal Agencies / DISCOMs at 8 States/UTs allocated to ADB.
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
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 16 Dec 2021

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 16 Dec 2021 1,442,425.41

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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

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Related Publications

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Tenders

Tender Title Type Status Posting Date Deadline
Solar Rooftop Projects Specialist Individual - Consulting Closed 18 May 2021 24 May 2021
Renewable Energy Service Advisor (Finance) Individual - Consulting Closed 11 Sep 2020 17 Sep 2020
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
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 Technical Consultant 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 | Address Executing Agency 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 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 186,607.00 —

Procurement Plan

None currently available.