BHOPAL: Madhya Pradesh is expected to attract up to $1 billion in private investment with support from the Asian Development Bank (ADB), following the signing of its first transaction advisory services (TAS) agreement in India.
In a press release, ADB said that, under an agreement with the Madhya Pradesh Government in Bhopal, it plans to support the development of three renewable energy projects. Under the public-private partnerships (PPP) agreement, ADB will serve as a transaction advisor. The projects include the development of solar and a battery energy storage facility at Shajapur to cater to the state’s peak electricity demand and enhance grid stability.
The projects are expected to strengthen grid stability by supporting peak-hour electricity supply and improving power reliability during periods when solar generation is unavailable. The projects support Madhya Pradesh’s Renewable Energy Policy 2025, which aims to expand the state’s renewable energy and storage capacity so that renewable resources can meet 50% of its electricity demand by 2030.
The projects support Madhya Pradesh’s Renewable Energy Policy 2025, which aims to expand the state’s renewable energy and storage capacity so that renewable resources can meet 50% of its electricity demand by 2030.
Understanding Madhya Pradesh’s RE Policy 2025
Under Madhya Pradesh’s Policy, it seeks ₹50,000 crore in investment by 2027 in the renewable energy generation sector. As part of the state’s plan, the policy envisions investment in renewable energy equipment manufacturing, with ₹10,000 crore in investment by 2027 and ₹4,000 crore by 2024. Moreover, the policy intends to incentivize the repowering and technology upgrades of renewable energy projects.
With the latest partnership, Madhya Pradesh joins the portfolio of renewable energy PPP projects supported by ADB across diverse markets in Asia and the Pacific. ADB’s TAS helps governments develop bankable projects by applying international best practices in project preparation, structuring, and procurement.
Under the latest partnership, ADB has worked with Madhya Pradesh for more than 25 years across multiple sectors and continues to support the state’s development priorities, including investments in energy infrastructure.
ADB Country Director for India Mio Oka signed the agreement in the presence of Madhya Pradesh Chief Minister Shri Mohan Yadav. The latest initiative seeks to mobilize private investment to meet the state’s growing energy needs.
Emphasizing this, ADB Country Director for India Mio Oka said, “Public resources alone cannot meet India’s growing energy needs. Private capital exists, but markets need to be made investable.”
Mio Oka explained, “By helping Madhya Pradesh to structure bankable PPP projects, ADB is helping to crowd in private investment, demonstrate what works, and create scalable models for clean energy infrastructure across the state.”
