Abellon Equity (IFC-46819)

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
Jamnagar, Ahmedabad, Rajkot, Vadodara
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
  • International Finance Corporation (IFC)
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."
Voting Date
Sep 5, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Abellon Clean Energy Limited
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Infrastructure
The service or industry focus of the investment. A project can have several sectors.
Potential Rights Impacts
  • Healthy Environment
  • Labor & Livelihood
  • Right to Health
Only for projects receiving a detailed analysis, a broad category of human and environmental rights and frequently at-risk populations.
Investment Type(s)
Equity
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 40.00 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)
$ 265.00 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.
Primary Source

Original disclosure @ IFC website

Updated in EWS Sep 24, 2024

Disclosed by Bank May 13, 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.

As stated by the IFC, Abellon Waste Management Limited is a newly incorporated waste management and circularity company established in India. It will initially own and operate four waste-to-energy (WTE) plants (Jamnagar WTE 7.5 megawatt (MW), Ahmedabad WTE 14.9 MW, Rajkot WTE 14.9 MW and Vadodara WTE 14.9 MW), which will be transferred from Abellon Clean Energy Limited.

IFC investment will be up to US$40 million in Indian Rupee (INR) equivalent in the form of Optionally Convertible Debentures (OCDs) in Abellon to be utilized for constructing the WTE projects.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

-The ESIA report does not comprehensively report on the apprehensions of the proposed WTE incineration plant on their livelihoods. For example, the ESIA report in Ahmedabad has relied on
largely on secondary data on the issues of waste pickers without holding actual consultations with waste picker cooperatives or organizations.

-Despite adequate evidence on the negative impacts of waste-to-energy incineration in India and across the globe, the IFC has classified this project as “Category B” rather than “Category A” as it has significant adverse environmental and social risks that are diverse and irreversible.

-To circumvent the Government of India’s (GOI’s) environmental norms, the project proponents have deliberately chosen to keep the WTE project size at 14.9 MW instead of 15 MW, to escape Environmental Clearance (EC) mandated by the Environment Impact Assessment (EIA) rules 2006.

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 communities living near the Jamnagar WTE have raised several complaints regarding the foul odor emanating from the plant and its health impacts. They
have resorted to road blockades and gheraoing of the factory as a mark of protest. It has been well documented by the local media and the Gujarat Pollution Control Board based
on their inspection. They have also lodged complaints with the Municipality commissioner regarding this.

Abellon/Goodwatts WTE has been served with “show cause notice” based on the complaints of the residents near the plant because of the deposition of black soot on their homes, noise pollution, and foul odor on 15.12.2021. Other problems faced by the communities include eye irritation, headaches, and respiratory illness because of the severe air pollution from the plant.

The incinerator in Ahmedabad which has only been partially built is being constructed in Gyaspur village, on the outskirts of the city, where there is already another incinerator by Jindal Power operating nearby and there are many other polluting industries. Due to the pollution generated by the existing incinerators and other industries, communities residing here have already been suffering from severe health impacts with many reported cases of cancer. Construction of another WTE incinerator in such an area will bear cumulative health and environmental impacts.

Waste worker unions in Gujarat are also concerned about the economic displacement of informal waste pickers and recyclers as WTE incinerators directly impact their livelihood.

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

As stated by the IFC, the Company is promoted by Claris Limited, which is owned by the Handa Family (Arjun Handa and Aditya Handa). They are second generation entrepreneurs who initially were involved in specialty pharmaceuticals. Claris expanded into renewable energy and waste management in 2008.

The Handa family also has interests in dairy, education and startup investing.

As stated by Bloomberg, Abellon CleanEnergy Limited provides energy solutions. The Company contributes to clean energy generation through bio-energy including solid and liquid bio-fuels, bio-power, and other forms of clean energy generation. Abellon CleanEnergy serves customers worldwide.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
Claris Limited (India) Parent Company Industry and Trade owns Abellon Clean Energy Limited Client 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.

Client - Abellon Waste Management Limited:

Mr. Amit Odhaviya - AVP
Phone: +91-9238777811
Email: amit.po@abellon.com
Address: Near Parimal Crossing,Ellisbridge, Ahmedabad – 380006
Website: https://www.abelloncleanenergy.com

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

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