Agri-Waste to Energy – India

Key Facts

• Client: SAEL Industries Ltd (4 subsidiaries)
• Term: working capital facility (intention to renew annually for up to 3 years)
• Guarantee instrument: Pari Passu
• Guarantee exposure: INR 1.2 Bln (~USD 15 Mln, 75% of total facility)
• Effective date: October 2024

Deal Summary

AGRI3 is supporting the mobilisation of INR 1.6 Bln (~USD 20 Mln) from HSBC India for four subsidiaries of SAEL Industries Ltd, which together operate six Waste-to-Energy (WtE) plants powered by agricultural residues, primarily rice paddy straw in the states of Haryana, Punjab, Rajasthan, and Uttar Pradesh.

The working capital facility enables the four subsidiaries to procure agri-waste feedstock (rice stubble) from farmers during the harvesting season, converting residue that would otherwise be burned in fields into renewable energy. SAEL currently operates 77 MW of WtE capacity and 271 MW of solar capacity, and the facility supports the seasonal procurement of biomass to keep the plants running.

Impact Rationale

Paddy stubble burning is one of India’s most serious seasonal environmental crises, generating large quantities of methane, carbon monoxide, and carcinogenic compounds that cause toxic smog events across northern India, including Delhi, the world’s most polluted capital city. By purchasing stubble from farmers, SAEL enables an economically viable alternative that avoids the burning of millions of tonnes of agricultural waste annually, generating measurable GHG emission reductions and improvements in air quality.

The programme supports thousands of smallholder farmers who supply paddy straw through aggregators, providing an additional income stream from waste that would previously have been destroyed. KPIs aligned with SAEL’s reporting framework include CO2 emissions avoided, volume of agri-waste converted, and number of farmers supplying feedstock, all disaggregated by gender where possible.

Impact Targets

Protection of natural ecosystem (direct and indirect)

Sustainable agriculture

Improved rural livelihoods