The Project involves development and construction of a 250MW wind power project located in the district of Kutch, India. The project is being developed on a build-own-operate basis. ADB is proposing a direct nonsovereign loan to the Borrower, Ostro Kutch Wind Private Limited. The proposed financing will be structured as a standard project finance loan. The Borrower will use these funds, along with equity infusion and local commercial debt to fund the construction of the above projects.
|Project Name||Kutch Wind Project|
|Borrower/Company||Ostro Kutch Wind Private Limited
|Type or Modality of Assistance||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Partnerships
Private sector development
|Sector / Subsector||
Energy / Renewable energy generation - wind
|Gender Equity and Mainstreaming||No gender elements|
|Responsible ADB Department||Private Sector Operations Department|
|Responsible ADB Division||Infrastructure Finance Division 1|
|Responsible ADB Officer||Patil, Avesh|
|Project Sponsor(s)||ReNew Power Private Limited
|Description||The Project involves development and construction of a 250MW wind power project located in the district of Kutch, India. The project is being developed on a build-own-operate basis. ADB is proposing a direct nonsovereign loan to the Borrower, Ostro Kutch Wind Private Limited. The proposed financing will be structured as a standard project finance loan. The Borrower will use these funds, along with equity infusion and local commercial debt to fund the construction of the above projects.|
|Objectives and Scope||The project represents the very first time that ADB has supported a competitively bid out wind power project in India. It was awarded through the country's first ever wind auction at a price which made wind energy competitive vis-a-vis other sources of power in India. The objective behind the auction was to help low wind resource states in meeting their non-solar renewable purchase obligation (RPO) at a competitive price. ADBs assistance in the form of a long-term loan significantly improved project financials. This, in turn, had a positive effect in affirming the commercial viability of competitively bid out wind projects.|
|Status of Development Objectives||The Projects have started contributing to their development objectives. The 250 MW Project was developed in four phases and commissioning of the final phase occurred on March 30, 2019.|
|Status of Operation/Construction||In December 2017, ADB approved $100 million loan facility for IND: Kutch Wind Project which entailed providing project finance debt to Ostro Kutch Wind Private Limited. ADB has committed $93.98 million to the Project. The Project was acquired by Renew Power Private Limited in March 2018 as part of larger takeover of parent Ostro Energy Private Limited. The operational performance is stable post commissioning.|
|Linkage to Country/Regional Strategy||The project development supports infrastructure and environment, two of ADBs five core operational areas, which are based on ADBs Strategy 2020 and reaffirmed through its Midterm Review of Strategy 2020. The project development supports infrastructure and environment, two of ADBs five core operational areas, which are based on ADBs Strategy 2020 and reaffirmed through its Midterm Review of Strategy 2020. ADBs country partnership strategy for India (2018-2022) is based on three developmental pillars: (i) boosting economic competitiveness to crease more and better jobs, (ii) inclusive provision of infrastructure networks and services, and (iii) addressing climate change and increasing climate resilience. The project particularly supports pillar (iii). The project is consistent with ADB Energy Policy which prioritizes the support for the renewable energy development.|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||An initial environmental examination (IEE) report was completed in October 2018 to meet ADB SPS requirements. The IEE report has not recorded any critically endangered or endangered fauna in project site. All construction and operational impacts and mitigations are laid out in the environmental management plan of the project. Recommended environment monitoring activities such as bird and bat survey, ambient noise level monitoring and shadow flicker have commenced in the last quarter of 2019 to keep track the progress of environmental, health and safety performance. A third-party consultant has been engaged to conduct the bird and bat survey. The monitoring results will be reflected in the annual environmental and social performance report to be submitted to ADB for review and comments prior to ADB web disclosure.|
|Involuntary Resettlement||The 127.5 hectares of government revenue land where project facilities are located is under lease to the company and allocation of the land for the project did not lead to any economic or physical displacement. There are no outstanding issues in relation to land where the project is located.|
|Indigenous Peoples||The project and its activities will not impact on Indigenous Peoples (IPs). WTG locations are not located within any Scheduled tribe and IP lands.|
|Stakeholder Communication, Participation, and Consultation||Stakeholder consultations have been carried out as a part of the IEE and land take process. Regular engagement with the communities are undertaken to ensure that concerns related to the project are immediately resolved. Existing ESMS provides requirements for Stakeholder Communication, Participation and Consultation that are aligned to SPS requirements.|
|Timetable for assistance design, processing and implementation|
|Concept Clearance||20 Jun 2017|
|Credit Committee Meeting||06 Nov 2017|
|Approval||12 Dec 2017|
|Last PDS Update||28 Oct 2020|
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|
|Kutch Wind Project: Initial Poverty and Social Analysis||Initial Poverty and Social Analysis||Dec 2017|
|Kutch Wind Project: Report and Recommendation of the President||Reports and Recommendations of the President||Nov 2017|
|Kutch Wind Project: Project Data Sheet (हिन्दी)||Translated PDS||Oct 2017|
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|
|Kutch Wind Project: Draft Initial Environmental Examination||Initial Environmental Examination||Oct 2017|
Evaluation Documents See also: Independent Evaluation
None currently available.
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.