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
    Aggarwal, Meenakshi
    Private Sector Operations Department
    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
Approval Number Facility Fund Source Amount Status
4191 Loan Ordinary capital resources USD 30.00 million Committed
Operational Priorities
  • OP1: Addressing remaining poverty and reducing inequalities
  • OP2: Accelerating progress in gender equality
  • OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
  • OP5: Promoting rural development and food security
Sector / Subsector
  • Agriculture, natural resources and rural development / Agro-industry, marketing, and trade

Gender
Effective gender mainstreaming
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 EESF manufacturing plants to increase production efficiency and enable 100% production of EESFs, (ii) finance energy efficiency and health and safety-related capex for STLs fertilizer business, and (iii) support R&D toward new product development and digital initiatives to increase uptake of these fertilizers.
    Status of Development Objectives
    The Project has started contributing to its development objectives.
    Status of Operation/Construction
    Under progress. The Company is working towards increasing production efficiency / debottlenecking of capacity for production of EESFs.
    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, 20192024, 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, 20182022, 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.

    STL implements an overarching corporate policy and an ESMS and site level processes and procedures to manage EHS risks and potential impacts. Post ADB finance, STL commissioned an expert consultant to help it complete E&S corrective actions, with only one pending action relating to installation of GHG emission reduction systems at Tajola Site, which were delayed during pandemic. Two environmental events were reported in 2022-2023 reporting period relating to chemical release and exceedance to effluent discharge standards from manufacturing sites in Tajola. ADB is following up with the company on corrective actions implemented.

    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. No unanticipated involuntary resettlement impacts have been reported.

    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. STLs facilities are in industrial zones, not in tribal areas. The E&S audit confirmed no indigenous communities are present at the project sites. No unanticipated indigenous peoples impacts have been reported

    Stakeholder Communication, Participation, and Consultation
    The project has developed a stakeholder engagement plan to support regular engagement with various stakeholders.

    Contact

    Responsible ADB Officer
    Aggarwal, Meenakshi
    Responsible ADB Division
    Office of the Director General, PSOD
    Responsible ADB Department
    Private Sector Operations Department

    Timetable for assistance design, processing, and implementation

    Concept Clearance
    -
    Credit Committee Meeting
    -
    Approval
    17 Jun 2022
    Last PDS Update
    01 Feb 2024

    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.

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    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.


    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.

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