India : AJ Solar Power Project

Nonsovereign Project | 55182-001

The proposed loan will enable the borrower to construct a 80-megawatt solar photovoltaic based power plant in the state of Gujarat in India.

Project Details

  • Project Officer
    Agrawal, Keshari Nandan
    Private Sector Operations Department
    Request for information
  • Approval Date
    11 April 2022
  • Country/Economy
  • Sector
    • Energy
Project Name AJ Solar Power Project
Project Number 55182-001
Borrower / Company AEW India West One Private Limited
Country / Economy India
Location Nation-wide
Type or Modality of Assistance
4179 Loan Ordinary capital resources INR 4,063.40 million Approved
Operational Priorities OP2: Accelerating progress in gender equality
OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
Sector / Subsector

Energy / Renewable energy generation - solar

Gender Some gender elements
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Infrastructure Finance Division 1
Responsible ADB Officer Agrawal, Keshari Nandan
Project Sponsor(s) Al Jomaih Energy and Water Company
Description The proposed loan will enable the borrower to construct a 80-megawatt solar photovoltaic based power plant in the state of Gujarat in India.
Objectives and Scope The project will further diversify the energy mix of India in favor of renewable energy and is aligned with the target of Government of India to reach 500 gigawatts of nonfossil energy capacity and meet 50% of electricity requirement from renewable energy sources, thereby reducing the carbon intensity of the economy by 45% by 2030.
Linkage to Country/Regional Strategy The project is fully aligned with ADBs Energy Policy, which prioritizes support for renewable energy development. The project is consistent with the following operational priorities of ADB's Strategy 2030: (i) accelerating progress in gender equality; and (ii) tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability. It contributes to ADBs goal to provide cumulative climate finance of $100 billion from 2019 to 2030, since the loan of $53.8 million is financing 100% of the climate finance. No adaptation finance has been estimated for this project. It will also contribute to ADB's operational goal of scaling up private sector development and private sector operations, including supporting private sector operations' long-term cofinancing target, whereby every $1 in financing is to be matched by $2.50 of long-term cofinancing as per ADBs Strategy 2030. By promoting stable power supply and increasing the proportion of renewable energy generation, the project is aligned with pillar 2 (inclusive provision of infrastructure networks and services) and pillar 3 (addressing climate change and increasing climate resilience) of ADB's country partnership strategy, 2018-2022 with India.
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

An initial environmental and social impact examination was prepared by an independent consultant. The anticipated environmental impacts (ecology, noise, dust, waste generation and soil erosion) likely to result from construction activities are site specific, short term and can be effectively managed through good project management measures as per environmental management plans. Occupational health and safety risks will be mitigated through the development of a health and safety plan that will include routine training, monitoring, and provision of personal protective equipment. Consistent with ADB's Safeguard Policy Statement requirements, environmental and occupational health and safety provisions will be incorporated into the construction agreements.

The bird surveys confirmed the presence of the lesser floricans utilizing grassland to the south of the project for lekking. The layout of the solar panels and the route of the transmission line has been altered to avoid impacts to their breeding ground. The transmission line will be partially constructed underground to avoid the lekking area. Collision and electrocution risks to other avifauna, including the white-rumped vulture, will be mitigated through installation of bird flight diverters and increased separation between energized and grounded components. A biodiversity action plan with enhanced mitigation and monitoring measures will be implemented.

Involuntary Resettlement

The project will lease about 300 acres of land (against 332 acres of surveyed land belonging to 116 landowners) which is flat to slightly undulating private agricultural land. No physical displacement will occur from project's development.

A land acquisition audit was conducted to validate the land leasing process. Based on the audit, all interviewed landowners willingly entered into the lease and are satisfied with the annual lease amount. The study also identified farm workers who will be economically displaced because of conversion of agricultural land for the solar power plant. A livelihood restoration plan has been developed.

A resettlement framework was prepared to cover right of way for transmission line. Once the route for the transmission line is finalized, a resettlement plan will be developed.

Indigenous Peoples No land owned by indigenous peoples or scheduled tribes or castes has been leased, and no adverse effect on distinct and vulnerable indigenous people is expected.
Stakeholder Communication, Participation, and Consultation The project will develop stakeholder engagement plan and community development plan. A detailed grievance redress mechanism will be developed before commencement of civil works.
Timetable for assistance design, processing and implementation
Concept Clearance 16 Jun 2021
Credit Committee Meeting 02 Mar 2022
Approval 11 Apr 2022
Last PDS Update 20 Apr 2022

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
AJ Solar Power Project: Report and Recommendation of the President Reports and Recommendations of the President Mar 2022
AJ Solar Power Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Feb 2022

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
AJ Solar Power Project: Draft Initial Environmental Examination Initial Environmental Examination Apr 2022
AJ Solar Power Project: Social Compliance Audit Report Social Compliance Audit Report Feb 2022
AJ Solar Power Project: Resettlement Framework Resettlement Frameworks Nov 2021
AJ Solar Power Project: Resettlement Plan Resettlement Plans Nov 2021

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.