India : Solar Rooftop Investment Program (Tranche 2)

Sovereign Project | 49419-003

3.On 25 April 2024, the SBI and NABARD, through the Government, submitted to ADB formal periodic financing requests for the tranche 2 loan to be provided to the SBI and the tranche 3 loan to be provided to NABARD. Each periodic financing request is aligned with the framework financing agreement (FFA), which was revised and agreed with the government, the SBI, and NABARD. In the revised FFA, the MFF's roadmap and policy framework are unchanged since the program continues to be a high priority for the government as it works to achieve its intended outcome of increased solar rooftop capacity in India. To enable the SBI and NABARD to implement the subsequent tranches, the MFF availability period was extended from 30 September 2023 to 30 September 2026 (for 10 years) under the major change (footnote5). Further, the Ministry of New and Renewable Energy (MNRE) became the oversight body to supervise overall program implementation in place of the PNB board. Tranches 2 and 3 are being prepared in parallel.

Project Details

Project Name Solar Rooftop Investment Program (Tranche 2)
Project Number 49419-003
Country / Economy India
Project Status Proposed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan: Solar Rooftop Investment Program - Tranche 2
Clean Technology Fund US$ 90.50 million
Operational Priorities OP2: Accelerating progress in gender equality
OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
OP6: Strengthening governance and institutional capacity
Sector / Subsector

Energy / Renewable energy generation - solar

Gender Some gender elements
Description 3.On 25 April 2024, the SBI and NABARD, through the Government, submitted to ADB formal periodic financing requests for the tranche 2 loan to be provided to the SBI and the tranche 3 loan to be provided to NABARD. Each periodic financing request is aligned with the framework financing agreement (FFA), which was revised and agreed with the government, the SBI, and NABARD. In the revised FFA, the MFF's roadmap and policy framework are unchanged since the program continues to be a high priority for the government as it works to achieve its intended outcome of increased solar rooftop capacity in India. To enable the SBI and NABARD to implement the subsequent tranches, the MFF availability period was extended from 30 September 2023 to 30 September 2026 (for 10 years) under the major change (footnote5). Further, the Ministry of New and Renewable Energy (MNRE) became the oversight body to supervise overall program implementation in place of the PNB board. Tranches 2 and 3 are being prepared in parallel.
Project Rationale and Linkage to Country/Regional Strategy On 4 July 2023, ADB approved a major change in the facility to restructure the program. This was because the PNB was unable to implement the program effectively. In view of the PNB's nonperformance, the Government of India, as the loan guarantor, requested ADB to include additional borrowers in the program. Under the major change, the State Bank of India (SBI) and the National Bank for Agriculture and Rural Development (NABARD) were identified as the additional borrowers to implement the subsequent tranches of the MFF. The PNB's tranche 1 loan of $100.0 million was reduced to $9.5 million, as requested by the PNB and consented to by the Government of India. The SBI was expected to be the additional borrower under the major change for the facility for the unutilized balance of $90.5 million of tranche 1, which would be processed separately as a new tranche 2. NABARD is expected to be the borrower for subsequent tranches 3 and 4.
Impact

Energy security provided to all in an environmentally sustainable manner, and renewable energy developed

Outcome

Solar rooftop capacity in India increased

Outputs

Debt funding to the solar rooftop sector increased

SBI institutional capacity improved

Solar rooftop Market infrastructure and bankable subproject Pipeline developed

Geographical Location Nation-wide
Safeguard Categories
Environment FI
Involuntary Resettlement FI
Indigenous Peoples FI
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer Ogino, Kaoru
Responsible ADB Department Sectors Group
Responsible ADB Division Energy Sector Office (SG-ENE)
Executing Agencies
State Bank of India
Timetable
Concept Clearance -
Fact Finding -
MRM 27 Oct 2023
Approval -
Last Review Mission -
Last PDS Update 27 Oct 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.

None currently available.


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.

Title Document Type Document Date
Solar Rooftop Investment Program (Tranche 2): Updated Environmental and Social Management System Arrangement Environment and Social Management System Arrangements Nov 2023
Solar Rooftop Investment Program (Tranche 2): Environmental and Social Management System Arrangement Environment and Social Management System Arrangements Oct 2023

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.

Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.