The Asian Development Bank (ADB) has approved a results-based loan of $460 million 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 Maharashtra.

The bank highlighted the Maharashtra Power Distribution Enhancement Program for Agricultural Solarization, which aims to accelerate renewable energy adoption, improve rural energy access, and enhance 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.

The program targets solarizing agricultural feeders, upgrading rural distribution networks, deploying battery energy storage systems, and promoting green jobs and entrepreneurship, specifically for women. It plans to train 5,000 individuals, including 1,500 women, in these fields.

ADB pointed to key components of the program, including modernizing the state’s distribution network to make it renewable-energy-ready and contributing to a viability gap funding facility to support 1,000 MW of decentralized solar generation.

The grid-modernization plan includes upgrading 180 distribution substations, developing 3,000 ckm of high-tension and 1,200 ckm of low-tension lines, installing 4,500 distribution transformers, and deploying 500 MWh of distributed battery storage.

Additionally, the program aims to digitize system operations through agricultural solarization dashboards and monitoring solutions, covering at least 2,500 substations.

The distribution enhancement program expects to lower power purchase costs and distribution losses, enhance the overall financial sustainability of the power sector, and reduce transformer failure rates by 25%.

ABD said it will also provide technical assistance to strengthen capacity in carbon credit mechanisms while supporting community engagement, green skilling design, and preparatory activities for the next phase.

In March this year, ADB approved a $150 million loan to non-banking financial services company Shriram Finance to enhance access to finance for electric vehicles and low-emission commercial vehicles.

In July, the Green Climate Fund approved $200 million (~₹17.07 billion) for a new program led by ADB to enhance large-scale public and private investments in India’s high-impact and emerging clean energy sectors.