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
    Kumar Saurabh
    Private Sector Operations Department
    Request for information
  • Country/Economy
    India
  • Sector
    • Energy
Project Name
Delhi Power Distribution Project
Project Number
56145-001
Country / Economy
  • India
Location
Nation-wide
Type or Modality of Assistance
Approval Number Facility Fund Source Amount Status
0875 Grant Climate Innovation and Development Fund USD 2.00 million Committed
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
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.

    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, 2018-2022, 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 (E&S) 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. No injury, community health and safety issues have been reported in the last reporting period. An environmental and social management system (ESMS) has been developed to manage identified E&S impacts.
    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, stakeholder participation is limited to information sharing as outlined in the stakeholder engagement plan developed by the company. A grievance redress mechanism was also prepared to provide opportunity for stakeholders to provide feedback.

    Contact

    Responsible ADB Officer
    Kumar Saurabh
    Responsible ADB Division
    Infrastructure Finance Division 1
    Responsible ADB Department
    Private Sector Operations Department

    Timetable for assistance design, processing, and implementation

    Concept Clearance
    14 Nov 2022
    Credit Committee Meeting
    14 Nov 2022
    Approval
    -
    Last PDS Update
    21 Dec 2023

    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
    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.

    Title Document Type Document Date
    Delhi Power Distribution Project: Environment and Social Compliance Audit Report Environment and Social Compliance Audit Reports Oct 2023

    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.