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 |
||||||||
| Project Status | Proposed | ||||||||
| Project Type / Modality of Assistance | Loan Technical Assistance |
||||||||
| Source of Funding / Amount |
|
||||||||
| 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 | Availability of electricity and performance of electricity distribution business in rural Maharashtra improved; and Empowering citizens of Maharashtra through sustainable, equitable and balanced growth with a focus on the agriculture sector. | ||||||||
| Outcome | Access to reliable, efficient and sustainable power supply for agriculture usage in rural Maharashtra improved. | ||||||||
| Outputs | Electricity distribution network in rural areas of Maharashtra improved Awareness on efficient use of electricity and water in rural areas promoted |
||||||||
| Geographical Location | Maharashtra | ||||||||
| Safeguard Categories | |
|---|---|
| Environment | B |
| Involuntary Resettlement | B |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | |
| During Project Implementation | |
| Business Opportunities | |
|---|---|
| Consulting Services | For Monitoring of project implementation |
| Procurement | Distribution substations, lines, transformers and poles. |
| Responsible ADB Officer | Len V. George |
| 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 | - |
| Last Review Mission | - |
| Last PDS Update | 09 May 2019 |
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 |
|---|---|---|
| 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.
None currently available.
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.