Ex-Ante Evaluation (for Japanese ODA Loan)
Private Sector Investment Finance Division,
Private Sector Partnership and Finance Department, JICA
1. Name of the ProjectCountry: Republic of India
Project: Climate Change Management Project ("Project")
Loan Agreement: March 25, 2021
2. Background and Necessity of the Project(1) Current State and Issues of the Climate Change Management Sector in India
India's per capita greenhouse gas emissions have increased from 1.01 tons in 1999 to1.94 tons in 2018 (increase by an average of 3.61% per year). With total emissions ofapprox. 2.5 billion tons (in 2017), the country has been the world's third largest emitterof greenhouse gases. Meanwhile, power demand is expected to be 2,499 TWh by2030, compared with power supply of 1,614 TWh in 2019. Promoting both a reductionof CO2 emissions and securing power supply has become an important issue of thecountry. The government of India signed the Paris Agreement in 2016. It has set goals
in the NDC (Nationally Determined Contributions) to reduce per GDP greenhouse gas
emissions in tons of CO2 equivalent by 33% to 35% by 2030 from 2005 levels, and toincrease power supply from non-fossil fuels to 40% based on the installed capacity.
The government of India also established the Energy Saving Act in 2001, and has
been promoting energy saving since 2012 through the PAT (Perform, Achieve andTrade) mechanism. In order to mitigate the negative impact on the environment
caused by transportation demand, which has been increasing in the country, it alsoannounced that the percentage of new car sales of electric vehicles (EV) in 2030 willbe 30%. This Project will promote financing to fields of renewable energy, energy
saving, and EV through TCCL, a Non-Bank Finance Company (NBFC) that provides
financing to the Climate Change Management Projects. This Project is consistent with
the issues of the relevant sector and the policy of the government of India.
(2) Japan and JICA’s Policy and Operations in the Climate Change ManagementSector
This Project will promote climate change management (mitigation) and use of low
carbon energy by promoting the Climate Change Management Projects throughproviding support to the private sector. It is considered that this Project will contributeto SDGs Goal 7 (Affordable Clean Energy), Goal 13 (Climate Action), and Goal 17(Partnerships for the Goals). Japan's Country Development Cooperation Policy forIndia (March 2016) stated "support for sustainable and inclusive growth" as one of thepriority areas and that Japan will provide support for environmental and climatechange issues of India. Also, the JICA Country Analysis Paper for March 2018
analyzed the importance of infrastructure development for the development ofproductive industry. JICA has implemented the New and Renewable Energy
Development Project (Phase 2) and the "Micro, Small and Medium Enterprises
Energy Saving Project (Phase 3)" since 2014 to support financing to renewableenergy and energy saving through Indian Renewable Energy Development Agency(IREDA) and Small Industries Development Bank of India (SIDBI). However, since nosubsequent ODA loan project has been implemented, fund provision to the relevant
sector is expected through the mobilization of government funds as well as private
funds. In addition, the 10th Japan-India Energy Dialogue, a minister-level meeting
between Japan and India, held in December 2019 announced the promotion ofcooperative relationship between the countries for the introduction of renewableenergy, energy saving, and EV. This Project is consistent with these policies andanalysis.
(3) Other Development Partners’ Activity
International Finance Corporation (IFC) is an equity shareholder of the borrower
3. Project Description(1) Project Objective
The objective of the Project is to improve financial access of renewable energy
projects, energy saving projects, and electric vehicle (EV) projects (collectively the"Climate Change Management Projects"), by providing a long-term financing to Tata
Cleantech Capital Limited ("TCCL") in India, thereby contributing to sustainableeconomic growth and climate change mitigation in the country.
(2) Project Site/Target Area
The whole country of India(3) Project Components
Through a long-term financing to TCCL, improve financial access and increasefinancing to the Climate Change Management Projects implemented by TCCL in thewhole country of India.
(4) Loan Amount for Project
10,000 million Yen(5) Project Implementation Structure1) Borrower: TCCL
2) Executing Agency: TCCL
3) Operation and Maintenance Agency: TCCL
(6) Environmental and Social Consideration / Cross-sectoral Issues / GenderCategorization
1) Environmental and Social Consideration

① Category: FI② Reason for Categorization: The Project as a whole is classified as Category FI
according to JICA Guidelines for Environmental and Social Considerations(announced in April 2010), because its sub-projects will be identified after theapproval of JICA’s funding.
③ Other: In this Project, TCCL will categorize each sub project based on ourenvironmental and social consideration policy and the JICA Guidelines, andnecessary measures will be taken for each sub project. It has been agreed thateach sub project will not include Category A. Funds will be used mainly for
financing to solar power generation projects and wind power generation
projects as well as Energy Efficiency and EV projects..
2) Cross-sectoral Issues: This project will promote projects in fields of renewableenergy, energy saving, and EV in India through financing to TCCL, thereby
contributing to the mitigation of climate change impact.
3) Gender Categorization: [N/A] GI (Gender Mainstreaming Needs Survey, Analysis
Project)<Reason> Gender mainstreaming needs were confirmed in the review, but it was
not decided to carry out specific activities that contribute to gender equality or
women's empowerment.
4. Targeted Outcomes(1) Quantitative Effects
1) Outcomes (Operation and Effect Indicators)

Indicator

Volume of outstanding
Renewable Energy loans(rupees)

TargetBaseline(3 years after the completion(Actual Value in Decemberof disbursement: currently2019)
expected in 2026)
41,980 million rupees

100,000 million rupees

7 GW

13 GW

57 million rupees

8,000 million rupees

Renewable Energy
Installation by TCCL1(Generation capacity: GW)
Volume of outstanding
Energy Efficiency and EVloans (rupees)(2) Qualitative Effects
1

This indicator will be calculated by summing up all the projects which TCCL has participated in.

Improvement in financial access of renewable energy, energy saving, and EVbusinesses
5. Preconditions and External Factors
No in particular
6. Lessons Learned from Past Projects
Lessons learned in the ex-post evaluation of an ODA loan project for India, the Newand Renewable Energy Development Project, was that support should be provided tothe establishment of a monitoring system for the credit management of theintermediate financial institution, since renewable energy and energy saving projects
are likely to be affected by changes of political, economic, and natural circumstances.
It has been confirmed through the review of the Project that TCCL has necessary
monitoring system for the credit management.
7. Evaluation Results
This Project is consistent with the development issues and development policy ofJapan as well as cooperation policies and analyses of Japan and JICA, andcontributes to climate change management through improvement in financial accessof businesses in fields of renewable energy, energy saving, and EV. Therefore, theProject contributes to SDGs Goal 7 (Affordable Clean Energy), Goal 13 (ClimateAction), and Goal 17 (Partnerships for the Goals). It is significant to provide support.
8. Plan for Future Evaluation(1) Indicators to be Used
As described in Section 4.
(2) Timing
Ex-post evaluation: 3 years after the completion of disbursement
End