India : Delhi Power Distribution Project

Nonsovereign Project | 56145-001

The proceeds of the ADB debt financing will be utilized to part finance the capital expenditure requirements of the Issuer for fiscal year (FY) 2023 and FY2024 for strengthening its distribution network for meeting future load growth requirements, improving network reliability and reduction in distribution losses. The grant would be used to part-finance the purchase and integration of a 10-megawatt hours pilot battery energy storage system set up at Issuer's sub-station.

Project Details

  • Project Officer
    Kaur, Japnit
    Private Sector Operations Department
    Request for information
  • Country/Economy
    India
  • Sector
    • Energy
Project Name Delhi Power Distribution Project
Project Number 56145-001
Borrower / Company
Country / Economy India
Location Nation-wide
Type or Modality of Assistance
0875 Grant Climate Innovation and Development Fund USD 2.00 million Approved
Operational Priorities OP2: Accelerating progress in gender equality
OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
OP4: Making cities more livable
Sector / Subsector

Energy / Electricity transmission and distribution
Gender Effective gender mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Infrastructure Finance Division 1
Responsible ADB Officer Kaur, Japnit
Project Sponsor(s)
Description The proceeds of the ADB debt financing will be utilized to part finance the capital expenditure requirements of the Issuer for fiscal year (FY) 2023 and FY2024 for strengthening its distribution network for meeting future load growth requirements, improving network reliability and reduction in distribution losses. The grant would be used to part-finance the purchase and integration of a 10-megawatt hours pilot battery energy storage system set up at Issuer's sub-station.
Objectives and Scope

Impact. The project is aligned with the following impact: (i) bringing efficiency to the power supply network, (ii) facilitating reduction in losses and outages, and (iii) reducing emission intensity of GDP by 33 to 35 percent from the 2005 level in India by 2030.

Outcome. The project will have the following outcome: energy efficiency and reliability of power supply improved.

Outputs. The project is expected to have the following outputs: (i) smart, efficient, and disaster-resilient power distribution system established, in a gender-sensitive manner; and (ii) gender equality in the Issuer's operations enhanced.
Status of Development Objectives ADB has undertaken due diligence and reviewed the potential environmental and social impacts of the project and the measures to avoid, minimize, mitigate, and compensate for the adverse impacts in the safeguard reports and plans. The due diligence identified that anticipated impacts are related to occupational and community health and safety, hazardous waste management, noise and dust generation from construction and temporary road works. These impacts are expected to be site-specific and can be mitigated with appropriate measures. The environmental and social measures and the institutional capacity and commitment of the Issuer to manage the project's social and environmental impacts are deemed adequate. The Issuer has established a certified integrated management system, covering management of quality, safety, health, environment, energy, and social accountability. ADB proceeds will not be utilized towards activities categorized A for their environmental impacts. The Issuer will establish an environmental and social management system satisfactory to ADB and will report its environmental and social performance to ADB annually.
Linkage to Country/Regional Strategy The project is aligned with ADB's Strategy 2030 and relates to three of the seven core key operational priorities (OPs) of ADB under Strategy 2030: (i) making cities more livable (OP 4); (ii) tackling climate change and building disaster resilience (OP 3) by converting existing infrastructure into smart, safe, energy efficient, and climate resilient infrastructure; (iii) accelerating progress in gender equality (OP 2) by strengthening the institutional capacity of teh Issuer to incorporate gender and social inclusion in its operations. The project is aligned with promoting energy efficiency under ADB's Energy Policy 2009 and contributes to ADB's aim to provide climate finance of $100 billion cumulatively from 2019 to 2030, since $6.5 million of ADB facility contributes to climate mitigation (through setup of smart meters). The project is aligned with the Climate Change and Disaster Risk Management Theme. The project relates to two of the five core specializations of ADB: infrastructure and environment. The project will also contribute to expanding ADB's private sector operations as per Strategy 2030. By supporting BESS, ADB will position itself to take a lead in supporting mainstreaming of energy storage solutions for better integration of renewable energy. ADB, together with the Issuer will take the learnings from the pilot project to other DISCOMs in India. The project is aligned with ADB's country partnership strategy for India, 20182022, particularly pillar 1: boosting economic competitiveness to create more and better jobs and pillar 3: addressing climate change and increasing climate resilience.
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects ADB has undertaken due diligence and reviewed the potential environmental and social impacts of the project and the measures to avoid, minimize, mitigate, and compensate for the adverse impacts in the safeguard reports and plans. The due diligence identified that anticipated impacts are related to occupational and community health and safety, hazardous waste management, noise and dust generation from construction and temporary road works. These impacts are expected to be site-specific and can be mitigated with appropriate measures. The environmental and social measures and the institutional capacity and commitment of the Issuer to manage the project's social and environmental impacts are deemed adequate. The Issuer has established a certified integrated management system, covering management of quality, safety, health, environment, energy, and social accountability. ADB proceeds will not be utilized towards activities categorized A for their environmental impacts. The Issuer will establish an environmental and social management system satisfactory to ADB and will report its environmental and social performance to ADB annually.
Involuntary Resettlement ADB proceeds will not be utilized towards activities that will result in any physical or economic displacement and are therefore categorized A or B. Once specific assets or facilities are identified, the Issuer will conduct a social compliance audit or a land acquisition audit prior to use of ADB proceeds.
Indigenous Peoples ADB proceeds will not be utilized towards activities that, directly or indirectly, affect distinct and vulnerable indigenous peoples and are therefore categorized A or B.
Stakeholder Communication, Participation, and Consultation Given the nature of the proposed project, there will be limited opportunities for stakeholder participation in project implementation. However, a stakeholder engagement plan will be developed, together with a grievance redress mechanism to provide opportunity for stakeholders to provide feedback to the company.
Timetable for assistance design, processing and implementation
Concept Clearance 14 Nov 2022
Credit Committee Meeting 14 Nov 2022
Approval -
Last PDS Update 23 Dec 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.

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Title Document Type Document Date
Delhi Power Distribution Project: FAST Report Faster Approach to Small Nonsovereign Transactions Dec 2022
Delhi Power Distribution Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Oct 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.

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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