According to ADB documents, Asian Development Bank (ADB), through the solar rooftop investment program (SRIP), proposes to provide a $500 million sovereign-guaranteed multi-tranche financing (MFF) comprising four tranches.The SRIP aims to finance solar rooftop systems through public financial institutions, including the SBI and the National Bank for Agriculture and Rural Development (NABARD). The definition of the solar roof top has been modified to include ground-mounted solar power installations by the Ministry of New and Renewable Energy, Government of India. The impacts of the facility would be energy security provided to all in an environmentally sustainable manner and renewable energy developed, aligned with the Government of India's Integrated Energy Policy. The outcome would be solar rooftop capacity in India increased. The MFF (and tranche 2) outputs would be (i) debt funding to the solar rooftop sector increased, (ii) SBI and NABARD institutional capacity improved, and (iii) solar rooftop market infrastructure and bankable subproject pipeline developed.
On October 2023, SBI and NABARD, through the Government, submitted to ADB formal periodic financing requests (PFR) for tranche 2 and 3 loans to be provided to the SBI and NABARD, respectively. Each PFR is aligned with the financing framework agreement (FFA), which was revised and agreed with the government, SBI and NABARD. In the revised FFA, the MFF's roadmap and policy framework are unchanged since the program remains to be highly important to achieve the government's intended outcome of increased solar rooftop capacity in India. To enable SBI and NABARD to implement the MFF availability period was extended until 30 September 2026 (10 years) under the major change. Furthermore, the Ministry of New and Renewable Energy (MNRE) became the oversight body in place of the PNB Board to supervise overall program implementation.
PROJECT RATIONALE AND LINKAGE TO COUNTRY/REGIONAL STRATEGY
On 4 July 2023, ADB approved a major change in the facility to restructure the program. This was because PNB was unable to implement the program effectively. In view of PNB's nonperformance, the Government of India, as the loan guarantor, has requested ADB to include additional borrowers in the program. Under the major change, the State Bank of India (SBI) and the National Bank for Agriculture and Rural Development (NABARD) were identified as the additional borrowers to implement the subsequent tranches of the MFF. PNB's tranche 1 loan of $100 million has been reduced to $9.5 million as requested by PNB and consented to by the Government of India. SBI was expected to be the additional borrower under the major change for the facility for the unutilized balance of $90.5 million under the existing tranche 1, which would be processed separately as a new tranche 2, while NABARD is expected to be the borrower for new tranches 3 and 4, respectively. Tranches 2 and 3 are hereby prepared in parallel.
ENVIRONMENTAL AND SOCIAL INFORMATION
The Ministry of New and Renewable Energy (MNRE) and Ministry of Environment, Forest and Climate Change (MoEF&CC), Government of India (GOI), vide respective office memorandums7 dated 14th August 2017 and 7th July 2017, have clarified that Solar Photo Voltaic (PV) Power Projects, Solar Thermal Power Plants and Development of Solar Parks are outside the purview of environment impact assessment (EIA) notification 2006 and its amendment thereon and as such no prior environmental clearances either at the center or at the state level is required. However, disposal of photovoltaic panels/cells is covered under the provisions of Hazardous and Other Waste (Management and Trans-Boundary Movement) Rules, 2016, and is to be handled accordingly. The SBI will ensure compliance with GOI's laws and other legal requirements through its sub-borrower.
State Bank of India (SBI) is a Fortune 500 company, an Indian multinational, public sector banking and financial services statutory body headquartered in Mumbai, India. SBI has over two centuries of rich heritage and legacy, accredits it as one of the trusted Bank through generations. SBI is the largest Indian Bank with over 25% market share, serves over 450 million customers through its vast network of over 22,000 branches 62,617 ATMs/ADWMs 71,968 Business Correspondents (BC) or Customer Service Point Kiosk outlets (CSPs) across India. SBI also has a global presence and operates across time zones through 229 offices in 31 countries worldwide.
|Responsible ADB Officer
|Responsible ADB Department
|Responsible ADB Division
|Energy Sector Office (SG-ENE)
|State Bank of India
ACCESS TO INFORMATION
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ACCOUNTABILITY MECHANISM OF ADB
The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main.