The Asian Development Bank (ADB) has approved a $460 million results-based loan to modernize rural power infrastructure and promote renewable energy adoption in India’s state of Maharashtra. The Maharashtra Power Distribution Enhancement Program for Agricultural Solarization aims to improve agricultural productivity by providing farmers with reliable daytime solar electricity for irrigation. This initiative supports Maharashtra’s Power Sector Vision 2030, which seeks to expand renewable energy use, improve rural energy access, and strengthen the financial sustainability of the power sector. The program will also receive an additional $40 million concessional loan from the Clean Technology Fund (CTF), administered by ADB.
According to ADB Country Director for India Mio Oka, the program builds on ADB’s long-term collaboration with Maharashtra to integrate renewable energy solutions that benefit both the agriculture and energy sectors. She noted that the initiative will transform the rural energy landscape through decentralized solar solutions, better grid reliability, and the empowerment of communities—especially women—through green livelihood opportunities.
Under the program, Maharashtra will solarize agricultural feeders, upgrade rural distribution networks, install battery energy storage systems (BESS), and promote green jobs and entrepreneurship. By 2028, the initiative aims to supply daytime electricity to at least 900,000 agricultural consumers while cutting annual greenhouse gas emissions by over 3 million tons.
The program’s key components include modernizing the distribution network to make it renewable-energy-ready and establishing a viability gap funding mechanism to support 1,000 megawatts (MW) of decentralized solar generation. Planned infrastructure upgrades include 180 distribution substations, 4,500 transformers, 3,000 circuit kilometers of high-tension lines, and 1,200 circuit kilometers of low-tension lines, along with 500 MWh of distributed battery storage. It will also digitize operations through solarization dashboards and modern monitoring systems for 2,500 substations. The program will train 5,000 individuals—including 1,500 women—in green skills and support entrepreneurship linked to the renewable energy value chain.
In addition to expanding renewable energy, the program is expected to reduce power purchase costs, minimize distribution losses, lower transformer failure rates by 25%, and improve the overall financial health of the power sector. ADB will provide technical assistance to support program implementation, enhance capacity for carbon credit mechanisms, and facilitate community engagement and skill development.
As a leading multilateral development bank, ADB continues to champion inclusive and sustainable growth across Asia and the Pacific. Since its establishment in 1966, ADB—owned by 69 members, including 50 from the region—has worked with governments and partners to deliver innovative financial solutions and transformative infrastructure that promote resilience and sustainable development.
