India: SAEL Solar Power (AIIB-000840)

Regions
  • South Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • India
Geographic location where the impacts of the investment may be experienced.
Specific Location
Anantapur, Kurnool and YSR districts
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • Asian Infrastructure Investment Bank (AIIB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Borrower
SAEL Solar MHP1 Private Limited, Ajay Tiwari
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 144.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 144.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 192.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ AIIB website

Updated in EWS Nov 2, 2024

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

Accordinnng to AIIB, the proposed project involves the design, development, construction, operation and maintenance of 300 MW ac solar photovoltaic (PV) power plant located in the state of Andhra Pradesh, India (the Project). The power generated from the solar plant shall be evacuated to the grid through a proposed ~12.8 km transmission line connecting the project sub-station to the grid sub-station at the Kurnool-III power station (owned by Power Grid Corporation of India Ltd., a state-owned entity).

The Project will sell electricity to Solar Energy Corporation of India through a power purchase agreement (PPA) for a period of 25 years from the scheduled commercial operation date. The tariff for the Project was determined through a tariff based competitive bidding is INR2.60 per kWh (~USD3.17 US cents per kWh) for the term of the PPA.

SAEL land team has identified approximately 1881.32 acres of land for the Solar plant site, out of which ~1500 acres will be procured for the project site, and it will be acquired through lease for the entire duration of the Power Purchase Agreement (PPA) which is executed between M/s SAEL Solar MHP1 Private Limited and the Solar Energy Corporation of India Limited. M/s SAEL Solar MHP1 Pvt. Ltd was awarded the project through a reverse bidding process based on tariff considerations.

 

People Affected By This Project
People Affected By This Project refers to the communities of people likely to be affected positively or negatively by a project.

The solar project site will be developed in an area covering two villages namely (i) Koduru village, Kondapuram tehsil, YSR District, and (ii) Bodaipalle village, Tadipatri tehsil, Anantapur District in the state of Andhra Pradesh for a capacity of 300 MW solar project. The proposed project will be situated at an elevation ranging between 242m to 255m above mean sea level on flat to undulating agricultural land. The designated area for the project primarily covered with agricultural crops and trees, predominantly Neem, Tamarind and Acacia. Currently, sorghum and chickpea are being cultivated in the designated land parcels, characterized by a soil composition consisting mainly of a blend of sand and black soil within the region.

While the proposed project is spread across two villages, Koduru and Bodaipalle, the nearest settlements are located at (i) Konduru village located at ~55m from the boundary towards south direction, (ii) Murugampalli village located at ~40m from the boundary towards northeast direction, (iii) Bodaipalle village located at ~350m from the boundary towards southwest direction and (iv) K. Sirigepalle village located at ~550m from the boundary towards north direction.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The estimated total project cost is USD192 million. The proposed total debt financing for the Project is USD144 million which would primarily be used to fund the construction of the solar plant and other costs such as financing costs, contingency etc.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

M/s SAEL Solar MHP1 Pvt. Ltd (SSMPL) is a privately held company engaged in power generation. It operates as a subsidiary of SAEL Industries Limited (SIL), which is promoted by SAEL Limited (SAEL).

The Sponsor of the Project is SAEL Industries Limited (SAEL Industries), an emerging renewable energy company in India. SAEL Industries has an overall contracted solar power asset portfolio of ~4,455 MW which comprises of ~365 MW of operating capacity, and the balance under construction and pre-development which the company plans to install by 2026.

 

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - SAEL Industries Limited Parent Company Energy

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

PROJECT TEAM LEADER

Asian Infrastructure Investment Bank

Prakash Bajoria

Senior Investment Officer

prakash.bajoria@aiib.org

BORROWER

SAEL Solar MHP1 Private Limited

Ajay Tiwari

Project Head

ajay.tiwari@sael.co

IMPLEMENTING ENTITY

SAEL Industries Limited,

Laxit Awla, CEO

laxit.awla@sael.co

 

 

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.aiib.org/en/contact/information-request/index.html

ACCOUNTABILITY MECHANISM OF AIIB

The AIIB has established the Accountability Mechanism for Project-Affected People (PPM). The PPM provides Òan opportunity for an independent and impartial review of submissions from Project-affected people who believe they have been or are likely to be adversely affected by AIIBÕs failure to implement the ESP in situations when their concerns cannot be addressed satisfactorily through Project level GRMs or AIIB Management processes.Ó Two or more project-affected people can file a complaint. Under the current AIIB policy, when the bank co-finances a project with another development bank, it may apply the other bank's standards. You can refer to the Project Summary Information document to find out which standards apply. You can learn more about the PPM and how to file a complaint at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/how-we-assist-you/index.html

The complaint submission form can be accessed in Arabic, Bahasa Indonesia, Bengali, Chinese, English, Tagalog, Hindi, Nepali, Russian, Turkish, or Urdu. The submission form can be found at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/submission/index.html

How it works

How it works