The International Finance Corporation (IFC), a member of World Bank Group, will provide a $50 million (~₹3.2 billion) loan to Arinsun Clean Energy, a subsidiary of Solenergi Power Private Ltd. (SPPL), backed by Actis, to develop a 250 MW solar project in the Rewa Solar Park in Madhya Pradesh.
The IFC plans to issue up to $50 million (~₹3.2 billion) through non-convertible debentures (NCD) and will help mobilize up to $100 million (~₹6.4 billion) from other lenders, according to an IFC release.
The funds raised will be utilized by Arinsun Clean Energy for project development, construction, financing, operations and maintenance. According to Mercom’s India Solar Project Tracker, Solenergie Power had the winning bid to develop 250 MW of solar by quoting a first-year tariff of Rs.2.974 (~$0.0444)/kWh and a levelized tariff of Rs.3.304 (~$0.0495)/kWh.
The project is expected to be complete by December 2018. The estimated project cost is around $200 million (~₹12.8 billion).
Recently, project developers ACME Solar, Solenergi Power, and Mahindra Renewables, signed power purchase agreements (PPAs) with the Madhya Pradesh Power Management Corporation Ltd. (MPPMCL) and the Delhi Metro Rail Corporation (DMRC) for supply of power from the 750 MW Rewa Ultra Mega Solar Park.
The Government of Madhya Pradesh appointed IFC as the lead transaction advisor to enable the Rewa Ultra Mega Solar Park and the state government to facilitate the entire private investment for the Rewa Solar project.
IFC’s role includes advising on a robust project structure, identifying, recommending and upon request, helping implement solutions for key commercial, legal, regulatory, technical and system operations related to issues and designing a transparent auction process to help select private entities develop the projects in the Rewa Ultra Mega Solar Park project.
In all, the IFC has promised mobilization of $550 million (~₹35.5 billion) in private investment for the 750 MW Rewa Ultra Mega Solar Park project.
Image credit: Adani Infra
Wendy is a co-founder of Mercom Capital Group, the parent company of Mercom India. Wendy is a contributing editor at MercomIndia.com and is responsible for content quality across the company and products. She has over 15 years of business and finance experience in the energy and technology markets. In addition to Mercom, Wendy has written for many other clean energy-focused blogs and publications. More articles from Wendy Prabhu.