India : Madhya Pradesh Renewable Energy Scaling Up Project
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 Officer
Acharya, Jiwan S.
Sectors Group
Request for information -
Country/Economy
India -
Sector
- Energy
| Project Name | Madhya Pradesh Renewable Energy Scaling Up Project | ||||
| Project Number | 56300-001 | ||||
| Country / Economy | India |
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| Project Status | Proposed | ||||
| Project Type / Modality of Assistance | Loan |
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| Source of Funding / Amount |
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| 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 |
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| Sector / Subsector | Energy / Electricity transmission and distribution |
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| 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 |
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| Outcome | Renewable energy generation capacity increased |
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| 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. |
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| Geographical Location | Madhya Pradesh | ||||
| Safeguard Categories | |
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| Environment | B |
| Involuntary Resettlement | B |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
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| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | |
| During Project Implementation | |
| Business Opportunities | |
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| Consulting Services | 1 consulting service package |
| Procurement | 3 procurement packages |
| Responsible ADB Officer | Acharya, Jiwan S. |
| 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 |
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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 |
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