India : Madhya Pradesh Renewable Energy Scaling Up Project

Sovereign Project | 56300-001

In 2000, and underpinned by the Electricity Act 2003, the Madhya Pradesh state government initiated a series of major power sector reforms. The long-term objectives of these reforms were to make the sector financially sustainable, remove subsidies, reduce power theft, achieve full electrification, augment generation and network capacity, increase private sector participation, and move towards full retail competition. To deliver against the objectives, the former Madhya Pradesh State Electricity Board (MPSEB) was split into five wholly state-owned government companies: a generating company, a transmission company, and three distribution companies. A separate publicly owned company was subsequently incorporated to handle bulk power sales and purchases.

Project Details

Project Name
Madhya Pradesh Renewable Energy Scaling Up Project
Project Number
56300-001
Country / Economy
  • India
Project Status
Proposed
Project Type / Modality of Assistance
  • Loan
Source of Funding / Amount
Loan: Madhya Pradesh Renewable Energy Scaling Up Project
Source Amount
Ordinary capital resources US$ 70.00 million
Operational Priorities
  • OP2: Accelerating progress in gender equality
  • OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
  • OP6: Strengthening governance and institutional capacity
Sector / Subsector
  • Energy / Electricity transmission and distribution

Gender
Effective gender mainstreaming
Description
In 2000, and underpinned by the Electricity Act 2003, the Madhya Pradesh state government initiated a series of major power sector reforms. The long-term objectives of these reforms were to make the sector financially sustainable, remove subsidies, reduce power theft, achieve full electrification, augment generation and network capacity, increase private sector participation, and move towards full retail competition. To deliver against the objectives, the former Madhya Pradesh State Electricity Board (MPSEB) was split into five wholly state-owned government companies: a generating company, a transmission company, and three distribution companies. A separate publicly owned company was subsequently incorporated to handle bulk power sales and purchases. Two public sector entities were later created under the state government's New and Renewable Energy Department specifically to develop renewable energy projects in Madhya Pradesh: (i) Madhya Pradesh Urja Vikas Nigam Limited, which is responsible for the development of small-scale renewable energy projects; and (ii) Rewa Ultra Mega Solar Limited (RUMSL) which is responsible for the development of large-scale renewable energy parks. The state electricity regulatory commission was established in 1998 and has issued tariff and other orders since 2004. The government has made good progress in achieving these objectives with the exception of financial sustainability in the distribution subsector. To address these residual challenges, the state is participating in the central government's Revamped Distribution Sector Scheme with the objective of improving the quality, reliability, and affordability of power supply to consumers and implementing various measures such as installing smart meters, asset mapping, energy accounting per feeder and have specific targets for loss reduction and revenue realization.
Project Rationale and Linkage to Country/Regional Strategy
Madhya Pradesh is the second largest state in India in terms of area and the fifth largest in terms of population. Madhya Pradesh has achieved an average growth rate of 12.4% (nominal) in gross state domestic product from 2020 to 2022, and in 2022, it ranked tenth in overall in the country. Agriculture, manufacturing, and services sectors contributed 35%, 25%, and 40%, respectively, of the economy.
Impact

Madhya Pradesh developed into a renewable energy hub with large scale adoption and deployment of renewable energy

Outcome

Renewable energy generation capacity increased

Outputs

Electricity transmission capacity for evacuation of power from solar parks strengthened and modernized.

GESI responsive capacity of New and Renewable Energy Department and Rewa Ultra Mega Solar Limited strengthened

Livelihood capacity of women and disadvantaged communities developed.

Geographical Location
Madhya Pradesh

Safeguard Categories

Environment
B
Involuntary Resettlement
B
Indigenous Peoples
C

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation, and Consultation

During Project Design
During Project Implementation

Business Opportunities

Consulting Services
1 consulting service package
Procurement
3 procurement packages

Contact

Responsible ADB Officer
Limbu, Tika R.
Responsible ADB Department
Sectors Group
Responsible ADB Division
Energy Sector Office (SG-ENE)
Executing Agencies
New and Renewable Energy Department

Timetable

Concept Clearance
24 Jul 2023
Fact Finding
04 Sep 2023 to 15 Sep 2023
MRM
31 Oct 2023
Approval
-
Last Review Mission
-
Last PDS Update
24 Jul 2023

Funding

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
Madhya Pradesh Renewable Energy Scaling Up Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Jul 2023

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.

Requests for information may also be directed to the InfoUnit.

Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.