Mahindra Renewables, a wholly-owned subsidiary of Mahindra Susten, has achieved financial closure for a 250 MW grid-connected solar photovoltaic (PV) project being developed in the Rewa Solar Park in the state of Madhya Pradesh.

The firm achieved the financial closure for the grid-connected solar PV project through a ₹7.5 billion ($115.5 million) loan from the Yes Bank, a leading private sector bank in India, and a financial assistance of ₹2 billion ($30.8 million) from other financial institutions.

Mahindra Renewables had won the bid to develop 250 MW grid-connected solar PV project in the Rewa Solar Park by quoting a first-year tariff of ₹2.979 (~$0.0445)/kWh and a 25 year levelized tariff of ₹3.309 (~$0.0495)/kWh.

Zhooben Bhiwandiwala, the president of Mahindra Partners said in a media statement, “This project demonstrates Mahindra Group’s commitment and focus towards renewable energy by partnering with leading banks like Yes Bank.”

The CEO of Yes Bank, Rana Kapoor, said, “The Rewa Solar Project by Mahindra Renewables is another step towards augmenting India’s renewable energy capacity and our support to this project builds on Yes Bank’s commitment to mobilize $5 billion in funding for solar projects in India by 2030.”

In January 2018, at the International Solar Alliance (ISA) conference organized at the World Future Energy Summit 2018 in Abu Dhabi, Yes Bank had announced its plans to mobilize up to $1 billion (~₹64 billion) to finance solar PV projects in India by 2023 and $5 billion (~₹320 billion) by 2030.

In January 2018, the International Finance Corporation (IFC), a member of the World Bank Group, had announced it will provide $50 million (~₹3.2 billion) as senior or IFC-A loan to Mahindra Renewables. Back then, the IFC had also announced, “Apart from loaning the $50 million (~₹3.2 billion), the IFC will also assist in mobilization of the syndicated parallel loan of up to $100 million (~₹6.4 billion).”

Image credit: By Vinaykumar8687 (Own work) [CC BY-SA 4.0], via Wikimedia Commons