The tranche 1 is a $100 million financial intermediation loan inclusive of a capacity development technical assistance (estimated utilization of the TA during tranche 1 is $2 million). As requested by the Government of India, Punjab National Bank is the borrower, and the India is providing 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 will be priced based on Punjab National Bank's cost of funds and subproject-specific risks. The 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 - Tranche 1|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Governance and capacity development
Private sector development
|Sector / Subsector||
Finance / Finance sector development
|Gender Equity and Mainstreaming||No gender elements|
|Description||The tranche 1 is a $100 million financial intermediation loan inclusive of a capacity development technical assistance (estimated utilization of the TA during tranche 1 is $2 million). As requested by the Government of India, Punjab National Bank is the borrower, and the India is providing 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 will be priced based on Punjab National Bank's cost of funds and subproject-specific risks. The 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|
|Description of Outcome||Solar rooftop capacity in India increased.|
|Progress Toward Outcome||43 subprojects of 20 MW capacity have been approved for ADB financing.|
|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)||With subsidy driven solar rooftop model of MNRE, and RESCO being new market driven model, PNB couldn't create a healthy pipeline of approved projects. Out of $25 million advanced to PNB in Dec 2017, only $5.8 million has been liquidated till date. In phase 2 of MNRE solar rooftop scheme, subsidy is limited to only residential sector of up to 10kWp capacity of rooftop solar. Individual consultants and Consultancy firms have been recruited and capacity development trainings & support to 8 states/UTs and PNB is ongoing. Through TA 9187, solar rooftop capacity is being created in states.|
|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.|
|Consulting Services||Recruitment of consulting services would be carried out under the capacity development component of Technical Assistance. The consultants would be engaged in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time).|
|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|
Punjab National Bank
7, Bhikhaiji Cama Place
|MRM||20 Jul 2016|
|Approval||07 Oct 2016|
|Last Review Mission||-|
|Last PDS Update||20 Mar 2020|
|Approval||Signing Date||Effectivity Date||Closing|
|07 Oct 2016||30 May 2017||24 Aug 2017||30 Jun 2023||-||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||200.00||Cumulative Contract Awards|
|ADB||0.00||07 Oct 2016||0.00||0.00||0%|
|Cofinancing||100.00||07 Oct 2016||0.00||25.00||25%|
|Status of Covenants|
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 - Tranche 1: Audited Project Financial Statements (1 April 2018-31 March 2019)||Audited Project Financial Statements||Dec 2019|
|Solar Rooftop Investment Program - Tranche 1: Audited Project Financial Statements (30 May 2017-31 March 2018)||Audited Project Financial Statements||Aug 2019|
|Guarantee Agreement (ADB Clean Technology Fund) for Loan 8309-IND: Solar Rooftop Investment Program - Project 1||Guarantee Agreements||May 2017|
|Loan Agreement (ADB Clean Technology Fund) for Loan 8309-IND: Solar Rooftop Investment Program - Project 1||Loan Agreement (Ordinary Resources)||May 2017|
|Solar Rooftop Investment Program - Tranche 1: Project Data Sheet (हिन्दी)||Translated PDS||Oct 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
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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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$100 Million ADB Loan to Punjab National Bank to Finance Solar Rooftop ProjectsADB and the Punjab National Bank today signed a $100 million loan — to be guaranteed by the Government of India — that will finance large solar rooftop systems on industrial and commercial buildings throughout India.
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