India: Smartchem Climate-Smart High-Efficiency Crop Nutrition Project

Nonsovereign Project | 56137-001

The project will support farmers to adopt enhanced efficiency speciality fertilizers (EESF), such as slow and controlled release fertilizers and water soluble fertilizers, which will in-turn aid increased food production towards increased farmer income and food security in India. Higher efficiency in nutrient delivery will result in increased agricultural productivity, reduced water and soil contamination, and improved resilience to climate change. The project will also support energy efficiency capex and gender inclusion. The project is fully aligned with the Government of India's goals to enhance agricultural productivity and increase farmers' incomes. The TA will focus on building the climate resilient soil management skills and financial literacy of 1,800 farmers.

Project Details

  • Project Officer
    Dora, Tushna

    Request for information
  • Approval Date
    17 June 2022
  • Country/Economy
    India
  • Sector
    • Agriculture, natural resources and rural development
Project Name Smartchem Climate-Smart High-Efficiency Crop Nutrition Project
Project Number 56137-001
Borrower / Company Smartchem Technologies Limited
Country / Economy India
Location Nation-wide
Type or Modality of Assistance
Loan Ordinary capital resources USD 30.00 million Approved
Strategic Agendas Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Agriculture, natural resources and rural development / Agro-industry, marketing, and trade

Gender Equity and Mainstreaming Effective gender mainstreaming
Responsible ADB Department
Responsible ADB Division
Responsible ADB Officer Dora, Tushna
Project Sponsor(s)
Description The project will support farmers to adopt enhanced efficiency speciality fertilizers (EESF), such as slow and controlled release fertilizers and water soluble fertilizers, which will in-turn aid increased food production towards increased farmer income and food security in India. Higher efficiency in nutrient delivery will result in increased agricultural productivity, reduced water and soil contamination, and improved resilience to climate change. The project will also support energy efficiency capex and gender inclusion. The project is fully aligned with the Government of India's goals to enhance agricultural productivity and increase farmers' incomes. The TA will focus on building the climate resilient soil management skills and financial literacy of 1,800 farmers.
Objectives and Scope The project will (i) finance capex at one of STL's EESF manufacturing plants to increase production efficiency and enable 100% production of EESFs, (ii) finance energy efficiency and health and safety-related capex for STL's fertilizer business, and (iii) support R&D toward new product development and digital initiatives to increase uptake of these fertilizers.
Linkage to Country/Regional Strategy

The project is consistent with Strategy 2030's operational priority (OP) 1 by improving incomes of farmers and creating employment opportunities for people, OP 2 by promoting gender equality through the gender action plan22, OP 3 by promoting adoption of advanced technologies to ensure sustainable use of land and water resources and building farmers' climate resilience, and OP 5 by providing quality farm inputs to farmers to improve agricultural production. The project is also aligned with the Operational Plan for Private Sector Operations, 2019 2024, which calls for focusing on the agricultural inputs subsector and mobilizing funds for _more environmentally sustainable_ subsectors and climate-adapted agribusiness projects. The project is also aligned with ADB's country partnership strategy for India, 2018 2022, which (i) identified supporting investments in rural infrastructure to improve agricultural productivity, (ii) stated that ADB will focus on government priorities to double farmers' incomes, and (iii) stated that ADB will provide support to intensify and diversify agricultural production.

The project is consistent with Strategy 2030 Operational Plan for Priority 5, which stresses that _over/misuse of fertilizers and pesticides is contaminating soil, water, and marine resources_ and that _smallholder farmers' access to modern inputs, is quite limited._ The plan further calls for ADB to mobilize investments to _sustainably increase farm productivity and incomes_ and promote _better-quality farm inputs._ The project was processed with the South Asia Department employing the One ADB approach, and will also complement ADB's Maharashtra Agribusiness Network Project, whose beneficiaries will also benefit from access to these better quality inputs.

Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

In compliance with ADBs Safeguard Policy Statement (SPS, 2009), the project is classified as category B for environment.

An independent consultant carried out a review of environmental, health, safety and social management processes and procedures at corporate and site level and developed a corrective action plan (CAP) was prepared which included recommendations for enhancement of STL environmental and social management system (ESMS), policies, processes and procedures, some specific compliance actions. Following the audit, STL has engaged expert consultant to assist the company in CAP implementation, in particular ESMS enhancement. STL has commissioned an expert consultant to help it complete the ESMS preparation and implementation, as well as other E&S and health and safety recommendations. Specific to safety risjs, STL is developing a corporate hazard assessment and risk analysis procedure that covers all hazard and risk assessments associated with its operations to enhance its existing site level safety management processes.

Involuntary Resettlement

In compliance with ADBs Safeguard Policy Statement (SPS, 2009), the project is classified as category C for involuntary resettlement.

The project is not expected to result in physical or economic displacement. The land occupied by the Taloja complex is leased from Maharashtra Industrial Development Corporation, which acquired the land. Consultations with local communities indicated the land acquisition did not result in involuntary resettlement

Indigenous Peoples

In compliance with ADBs Safeguard Policy Statement (SPS, 2009), the project is classified as category C for Indigenous Peoples.

No indigenous peoples impacts are envisaged. STL's facilities are in industrial zones, not in tribal areas. The E&S audit confirmed no indigenous communities are present at the project sites.

Stakeholder Communication, Participation, and Consultation The project will develop a stakeholder engagement to support regular engagement with various stakeholders.
Timetable for assistance design, processing and implementation
Concept Clearance -
Credit Committee Meeting -
Approval 17 Jun 2022
Last PDS Update 17 Jun 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.

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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

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Related Publications

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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.

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