The Asian Development Bank (ADB) has approved a $460 million results-based loan to modernize rural power infrastructure, expand distributed renewable energy generation, and enhance agricultural productivity in Maharashtra, India. The program, known as the Maharashtra Power Distribution Enhancement Program for Agricultural Solarization, aims to provide farmers with reliable daytime solar-powered electricity for irrigation, thereby supporting both energy access and agricultural development. An additional $40 million concessional loan from the Clean Technology Fund (CTF), administered by ADB, will complement the initiative.
The program is closely aligned with Maharashtra’s Power Sector Vision 2030, which focuses on accelerating renewable energy adoption, improving rural energy access, and ensuring the financial stability of the state’s power sector. Through this initiative, ADB seeks to strengthen the integration of renewable energy into agriculture while improving the efficiency and resilience of rural power systems.
Commenting on the project, ADB Country Director for India, Mio Oka, said, “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. 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 include the solarization of agricultural feeders, modernization of rural electricity distribution networks, deployment of battery energy storage systems (BESS), and promotion of green jobs and entrepreneurship, with a particular focus on empowering women. By 2028, it aims to supply daytime solar power to at least 900,000 agricultural consumers and reduce annual greenhouse gas emissions by more than 3 million tons.
Key components of the initiative include modernizing Maharashtra’s distribution network to make it ready for renewable integration and supporting a viability gap funding facility to help deploy 1,000 megawatts (MW) of decentralized solar generation. The grid modernization plan involves upgrading 180 distribution substations, installing 4,500 distribution transformers, developing 3,000 circuit kilometers of high-tension lines and 1,200 circuit kilometers of low-tension lines, and deploying 500 MWh of distributed battery storage capacity. In addition, the program will digitize system operations through agriculture solarization dashboards and advanced monitoring systems, covering at least 2,500 substations.
The program also has a strong focus on capacity building and green skills development. Around 5,000 individuals, including 1,500 women, will be trained in green technologies and entrepreneurship, helping to create sustainable livelihood opportunities across rural Maharashtra. By improving energy efficiency and reliability, the program is expected to lower power purchase costs, reduce distribution losses, and cut transformer failure rates by 25%, thereby strengthening the financial health of the state’s power sector.
ADB will also provide technical assistance to support program implementation, build capacity in carbon credit mechanisms, and foster community engagement and preparatory work for future phases. As one of Asia’s leading multilateral development banks, ADB continues to promote inclusive, resilient, and sustainable growth across the region. Through innovative financial instruments and strategic partnerships, ADB helps countries address complex challenges, develop quality infrastructure, and transition toward a cleaner and more sustainable energy future. Founded in 1966, ADB is owned by 69 members, including 50 from the Asia-Pacific region.
Subscribe to get the latest posts sent to your email.
){kind=link}