• India
  • Jul 05

ADB, ENGIE partner to build 400 MW solar power plant in Gujarat

• Asian Development Bank (ADB) has arranged Rs 1,460 crore loan for ENGIE group for constructing a 400-megawatt solar photovoltaic power plant in Surendranagar, Gujarat.

• ADB was the mandated lead arranger for the entire loan totalling Rs 14.6 billion (approximately $175.9 million) with ADB and Asian Infrastructure Investment Bank both providing Rs 7.3 billion.

• This is the second project that ADB has financed for the ENGIE group in India, following the financing of the group’s flagship project in the country in 2020.

• The solar panels will be constructed using locally produced bifacial photovoltaic power modules, thereby diversifying the solar module supply chain and supporting India-based manufacturers.

• The plant will generate an average of 805 gigawatt-hours annually over the next 25 years, avoiding nearly 662,441 tonnes of carbon dioxide emissions per year.

• The project will support the government of India’s target of achieving at least 500 gigawatts of non-fossil fuel energy capacity by 2030.

• ENGIE group is a global leader in low-carbon energy and services, with operations in 31 countries. In India, ENGIE’s portfolio includes 1.1 gigawatts of operational projects, comprising 220 megawatts of wind and the remainder in solar.

• Enren Energy Private Limited, a special-purpose vehicle owned by the ENGIE group, will implement the project, while state-owned electricity distribution company Gujarat Urja Vikas Nigam Limited will be the sole offtaker. 

• ADB has been supporting the development of renewable energy in India since 2007 and has financed several independent solar power producers.

Asian Development Bank

• The Asian Development Bank (ADB) envisions a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty in the region.

• From 31 members at its establishment in 1966, ADB has grown to encompass 68 members — of which 49 are from within Asia and the Pacific and 19 outside.

• ADB assists its members, and partners, by providing loans, technical assistance, grants, and equity investments to promote social and economic development.

• ADB maximises the development impact of its assistance by facilitating policy dialogues, providing advisory services, and mobilising financial resources through co-financing operations that tap official, commercial, and export credit sources.

• Committed to pursue a differentiated approach for states at different stages of development, ADB prioritises projects on basic services, critical infrastructure and services, institutional strength, and private sector development through sovereign operations in low-income states.

• Support for more developed states focuses on transformational programmes with policy and knowledge advice, combined with non-sovereign operations.

History of ADB

• ADB was conceived in the early 1960s as a financial institution that would be Asian in character and foster economic growth and cooperation in one of the poorest regions in the world.

• A resolution passed at the first Ministerial Conference on Asian Economic Cooperation held by the United Nations Economic Commission for Asia and the Far East in 1963 set that vision on the way to becoming reality.

• The Philippines capital of Manila was chosen to host the new institution, which opened on December 19, 1966, with 31 members that came together to serve a predominantly agricultural region. Takeshi Watanabe from Japan was ADB’s first president.

ADB and India

• India was a founding member of ADB in 1966 and fourth largest shareholder.

• ADB started operations in India in 1986.

• As of December 31, 2023, ADB has committed 623 public sector loans, grants, and technical assistance totaling $55.3 billion to India. ADB’s current sovereign portfolio in India includes 67 loans worth $14.15 billion.

• Cumulative sovereign and non-sovereign loan and grant disbursements to India amount to $43.45 billion. These were financed by regular ordinary capital resources and other special funds.

• ADB said it will continue to focus on projects and programmes that accelerate India's structural transformation, create jobs, address infrastructure gaps, promote green growth, and foster social and economic inclusiveness while deploying smart technologies and innovations.

• In 2023, ADB approved additional funding to support India’s national industrial corridor development programme to enhance its manufacturing competitiveness along with a loan for Visakhapatnam-Chennai Industrial Corridor Development.

• Two policy-based loans were committed to support the government’s urban reforms agenda at the state level and power sector reforms to facilitate the shift to renewable energy.

• In addition, ADB provided funding for expanding urban services in Uttarakhand, Rajasthan, and Tripura, improving road connectivity in Bihar and Madhya Pradesh, expanding Delhi-Meerut rapid rail transit corridor and boosting horticulture development in Himachal Pradesh.

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