fbpx 50193-003: Maharashtra Rural High Voltage Distribution System Expansion Program | Asian Development Bank

India: Maharashtra Rural High Voltage Distribution System Expansion Program

Sovereign (Public) Project | 50193-003 Status: Approved

The Asian Development Bank (ADB) has financed HVDS projects in India for reliable supply to rural customers through conventional project loan or program loan approach. Maharashtra State Electricity Distribution Company Limited (MSEDCL) and Government of Maharashtra (GOM) have requested the result-based lending (RBL) approach. The RBL is suitable for the following reasons (i) it uses MSEDCL's systems that contribute to institutional strengthening beyond the RBL; (ii) strong government interest and ownership of the rural electrification program; (iii) it would help lower transaction costs for over 600 small-scale contracts during implementation; and (iv) the focus on results and the government's willingness to link disbursements to results.

Project Details

Project Officer
Acharya, Jiwan S. South Asia Department Request for information
Country
  • India
Sector
  • Energy
 
Project Name Maharashtra Rural High Voltage Distribution System Expansion Program
Project Number 50193-003
Country India
Project Status Approved
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 3917-IND: Maharashtra Rural High Voltage Distribution System Expansion Program
Ordinary capital resources US$ 346.00 million
TA 9970-IND: Implementation Support for Maharashtra Rural High Voltage Distribution System Expansion Program
Technical Assistance Special Fund US$ 1.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Sector / Subsector

Energy / Electricity transmission and distribution - Energy efficiency and conservation

Gender Equity and Mainstreaming Some gender elements
Description The Asian Development Bank (ADB) has financed HVDS projects in India for reliable supply to rural customers through conventional project loan or program loan approach. Maharashtra State Electricity Distribution Company Limited (MSEDCL) and Government of Maharashtra (GOM) have requested the result-based lending (RBL) approach. The RBL is suitable for the following reasons (i) it uses MSEDCL's systems that contribute to institutional strengthening beyond the RBL; (ii) strong government interest and ownership of the rural electrification program; (iii) it would help lower transaction costs for over 600 small-scale contracts during implementation; and (iv) the focus on results and the government's willingness to link disbursements to results.
Project Rationale and Linkage to Country/Regional Strategy This program would support the first use of high voltage distribution systems (HVDS )for agriculture in the state. ADB's experience from HVDS implementation in other states is useful to structure the intervention including linkages to efficient electricity and water consumption, monitoring and verification requirements, and addressing implementation challenges. This fits with ADB's energy sector priorities of access to modern energy in rural areas. Importantly, the implementation of HVDS through MSEDCL reduces low voltage (a significant technical barrier) to the adoption of energy efficient pumps and strengthens ADB's work on demand-side energy efficiency. The proposed intervention is aligned with the India country partnership strategy for 2018-2022 for inclusive infrastructure, addressing climate change and India's Nationally Determined Contribution to reduce emission intensity by up to 35% by 2030. It is aligned with Strategy 2030's operational priorities of promoting rural development and food security; and addressing poverty and reducing inequalities. It would also support the goal of ensuring access to affordable, reliable, sustainable and modern electricity for all (Sustainable Development Goal 7).
Impact

Emission intensity of economy reduced by 33-35% by 2030 from 2005 levels (Government of India's Intended Nationally Determined Contributions)

Agricultural productivity in rural Maharashtra improved and efficiency in the electricity value chain achieved (Government of Maharashtra's Vision 2030)

Project Outcome
Description of Outcome Access to efficient, reliable, and good quality power supply for new agricultural customers in rural Maharashtra improved
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

High voltage electricity distribution network in rural Maharashtra for new agricultural customers installed

Institutional capacity of MSEDCL improved

Awareness regarding HVDS and the efficient use of electricity and water in rural Maharashtra enhanced

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Maharashtra
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Consultations were undertaken, a PSSA has been prepared based on assessment of activities and uploaded.
Involuntary Resettlement Consultations were undertaken, a PSSA has been prepared based on assessment of activities and uploaded.
Indigenous Peoples Category C.
Stakeholder Communication, Participation, and Consultation
During Project Design Consultations were undertaken with beneficiaries during program design
During Project Implementation
Business Opportunities
Procurement Distribution substations, lines, transformers, poles and meters.
Responsible ADB Officer Acharya, Jiwan S.
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Energy Department, Government of Maharashtra
Prakashgad (MSEB) Building
Plot No. G-9, Bandra (E) Mumbai - 400051
Maharashtra State Electricity Distribution Company Limited
Plot No. G-9, Prakashgad, Bandra (E),
Mumbai - 400051
Timetable
Concept Clearance 09 May 2019
Fact Finding 19 Jul 2019 to 26 Jul 2019
MRM 27 Sep 2019
Approval 28 Apr 2020
Last Review Mission -
Last PDS Update 28 Apr 2020

Loan 3917-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Apr 2020 - - 30 Sep 2022 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 703.10 Cumulative Contract Awards
ADB 346.00 28 Apr 2020 0.00 0.00 0%
Counterpart 357.10 Cumulative Disbursements
Cofinancing 0.00 28 Apr 2020 0.00 0.00 0%

TA 9970-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Apr 2020 - - 31 Mar 2022 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,000,000.00 0.00 0.00 0.00 0.00 0.00 1,000,000.00 28 Apr 2020 0.00

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.

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Tenders

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Contracts Awarded

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Procurement Plan

None currently available.