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

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

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.

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.

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.

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

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.