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ADB Approves $460 Million Loan to Boost Agricultural Solarisation in Maharashtra

The Asian Development Bank (ADB) has sanctioned a $460 million results-based loan to support the agricultural solarisation initiative in Maharashtra. The program aims to modernise rural power infrastructure, expand renewable energy generation, and enhance agricultural productivity by ensuring farmers have reliable daytime solar power for irrigation.

An additional $40 million concessional loan from the Clean Technology Fund (CTF), administered by ADB, will supplement the financing package. Together, these funds will help upgrade 180 substations, install 4,500 transformers, develop 4,200 circuit kilometres of power lines, deploy 500 MWh of battery energy storage, and support 1,000 MW of decentralised solar generation across the state.

The initiative, titled the Maharashtra Power Distribution Enhancement Program for Agricultural Solarisation, aligns with the state’s Power Sector Vision 2030, which seeks to expand renewable energy adoption, improve rural electricity access, and strengthen the financial stability of the power sector.

Mio Oka, ADB’s Country Director for India, stated, “This program builds on ADB’s enduring partnership with Maharashtra by integrating renewable energy into agriculture and energy systems. It will transform rural areas through decentralised solar solutions, improved grid reliability, and green livelihood opportunities—particularly for women.”

By 2028, the program is expected to provide daytime electricity to over 900,000 agricultural consumers and reduce annual greenhouse gas emissions by more than 3 million tons. It will also promote green jobs, entrepreneurship, and skill development, with training for 5,000 individuals, including 1,500 women.

Key components include:

• Upgrading rural distribution networks to make them renewable-ready.
• Solarising agricultural feeders to ensure sustainable irrigation power.
• Developing 3,000 ckm of high-tension and 1,200 ckm of low-tension lines.
• Digitising operations through solarisation dashboards and modern monitoring for at least 2,500 substations.
• Establishing a viability gap funding mechanism to enable 1,000 MW of decentralised solar installations.

The program is expected to reduce power purchase costs, lower transformer failures by 25%, and improve financial efficiency within Maharashtra’s power sector. ADB will also extend technical assistance to build capacity in carbon credit mechanisms, community engagement, and green skilling, while laying the groundwork for the program’s next phase.