ADB approves $460 million loan to support agricultural solarisation in Maharashtra

New Delhi: Asian Development Bank (ADB) has approved a USD 460 million results-based loan that aims to modernise rural power infrastructure, promote distributed renewable energy generation, and improve agricultural productivity by providing farmers with reliable daytime solar electricity for irrigation in Maharashtra.

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The Maharashtra Power Distribution Enhancement Program for Agricultural Solarization aligns with the state's Power Sector Vision 2030, which seeks to accelerate renewable energy adoption, improve rural energy access, and strengthen the financial sustainability of the power sector.

An additional USD 40 million concessional loan from the Clean Technology Fund (CTF), administered by ADB, will complement the programme, the Manila-based multilateral funding agency said in a statement.

"This programme builds on ADB's longstanding partnership with Maharashtra in advancing cross-sectoral interventions that integrate renewable energy solutions to strengthen both the agriculture and energy sectors," said ADB Country Director for India Mio Oka.

It will transform the rural energy landscape through decentralised solar solutions, improved grid reliability, and empowered communities, especially women, through green livelihoods, Oka said.

The programme will solarise agricultural feeders, upgrade rural distribution networks, deploy battery energy storage systems (BESS), and promote green jobs and entrepreneurship, particularly for women, it said.

By 2028, the programme aims to provide daytime electricity to at least 9,00,000 agricultural consumers and reduce annual greenhouse gas emissions by over 3 million tons, it said.

Key programme components include modernising Maharashtra's distribution network to make it renewable-energy-ready and contributing to a viability gap funding facility to support 1,000 megawatts (MW) of decentralised solar generation, it said.

The grid modernisation includes upgrading 180 distribution substations, installing 4,500 distribution transformers, developing 3,000 circuit kilometres of high-tension and 1,200 circuit kilometres of low-tension lines and deploying 500 MWh of distributed battery storage, it said.

It will also digitise system operations through agriculture solarisation dashboards and modern monitoring solutions covering at least 2,500 substations, while advancing green skilling by training 5,000 individuals, including 1,500 women, and creating opportunities for green livelihoods and entrepreneurship.

The programme is expected to lower power purchase costs and distribution losses, reduce transformer failure rates by 25 per cent, and enhance the overall financial sustainability of the power sector.

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