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 Name | Maharashtra Rural High Voltage Distribution System Expansion Program | ||||||||
| Project Number | 50193-003 | ||||||||
| 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 |
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| Sector / Subsector | Energy / Electricity transmission and distribution - Energy efficiency and conservation |
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| 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) |
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| 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 | 19 Oct 2020 | 11 Dec 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 | 74.41 | 0.00 | 22% |
| Counterpart | 357.10 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 28 Apr 2020 | 74.41 | 0.00 | 22% |
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.
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 |
|---|---|---|
| Loan Agreement (Ordinary Operations) for Loan 3917-IND: Maharashtra Rural High Voltage Distribution System Expansion Program | Loan Agreement (Ordinary Resources) | Oct 2020 |
| Program Agreement for Loan 3917-IND: Maharashtra Rural High Voltage Distribution System Expansion Program | Project/Program Agreements | Oct 2020 |
| Maharashtra Rural High Voltage Distribution System Program: Report and Recommendation of the President | Reports and Recommendations of the President | Apr 2020 |
| Maharashtra Rural High Voltage Distribution System Program: Technical Assistance Report | Technical Assistance Reports | Apr 2020 |
| Maharashtra Rural High Voltage Distribution System Program: Initial Poverty and Social Analysis | Initial Poverty and Social Analysis | May 2019 |
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 |
|---|---|---|
| Maharashtra Rural High Voltage Distribution System Program: Program Safeguard Systems Assessment | Program Safeguard Systems Assessments | Sep 2019 |
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 Provides $346 Million Loan for Rural Electricity in Maharashtra, India
ADB has approved a $346 million loan to India to help provide efficient and reliable power connection to rural agriculture customers in the state of Maharashtra.
Tenders
| Tender Title | Type | Status | Posting Date | Deadline |
|---|---|---|---|---|
| Power Engineer (Energy) | Individual - Consulting | Closed | 10 Feb 2021 | 16 Feb 2021 |
| Power Engineer (Distribution) | Individual - Consulting | Closed | 10 Feb 2021 | 16 Feb 2021 |
| Environment Safeguard Specialist | Individual - Consulting | Closed | 04 Feb 2021 | 10 Feb 2021 |
| Social Safeguard Specialist | Individual - Consulting | Closed | 03 Feb 2021 | 09 Feb 2021 |
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Contractor Address | Executing Agency | Contract Description | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|---|---|
| FINANCING FOR PRIOR RESULTS (DLI 4 AND 5) AND FULFILLMENT OF DLI 8 | Loan 3917 | 16 Dec 2020 | VARIOUS | VARIOUS INDIA | Maharashtra State Electricity Distribution Co Ltd | OTHERS | 74,411,000.00 | 74,411,000.00 |
Procurement Plan
None currently available.