ADB approves $460 million loan to support agricultural solarization in India
The Asian Development Bank (ADB) has approved a $460 million results-based loan that aims to modernize rural power infrastructure, promote distributed renewable energy generation, and improve agricultural productivity by providing farmers with reliable daytime solar electricity for irrigation in the state of Maharashtra in India, the press service of the Bank reported.
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 $40 million concessional loan from the Clean Technology Fund (CTF), administered by ADB, will complement the program.
This program 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 decentralized solar solutions, improved grid reliability, and empowered communities—especially women—through green livelihoods.”
The program will solarize agricultural feeders, upgrade rural distribution networks, deploy battery energy storage systems (BESS), and promote green jobs and entrepreneurship—particularly for women. By 2028, the program aims to provide daytime electricity to at least 900,000 agricultural consumers and reduce annual greenhouse gas emissions by over 3 million tons.
Key program components include modernizing 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 decentralized solar generation. The grid modernization includes upgrading 180 distribution substations; installing 4,500 distribution transformers; developing 3,000 circuit kilometers of high-tension and 1,200 circuit kilometers of low-tension lines; and deploying 500 MWh of distributed battery storage. It will also digitize system operations through agriculture solarization 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 program is expected to lower power purchase costs and distribution losses, reduce transformer failure rates by 25%, and enhance the overall financial sustainability of the power sector. ADB will provide technical assistance to complement program implementation and strengthen capacity in carbon credit mechanisms, while supporting community engagement, green skilling design, and preparatory activities for the next phase.
As reported previously, India has climbed to the ninth place in the world for total forest area, marking a significant achievement in global environmental conservation, according to the Global Forest Resources Assessment (GFRA) 2025 released by the Food and Agriculture Organisation (FAO).
