India: IFC proposes $50m investment in Mahindra Renewables’ solar PV plant

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The International Finance Corporation (IFC), the private investment arm of The World Bank, has proposed to invest $50 million in Mahindra Renewables Pvt Ltd’s (MRPL) solar photovoltaic plant, it said in a disclosure on January 9.

Mahindra Renewables has been granted, through international competitive bidding, a 250MW solar power project within the 750MWac Rewa Ultra Mega Solar Park in the Rewa district of Madhya Pradesh. The solar park is being developed by Rewa Ultra Mega Solar Limited (RUMSL), via a transaction advised on by IFC’s public private partnership team.

RUMSL is a joint venture company promoted by Madhya Pradesh Urja Vikas Nigam Limited (MPUVNL) – a Madhya Pradesh State Government agency and the Solar Energy Corporation of India (SECI) – a Government of India controlled parastatal.

“The proposed IFC investment involves a straight senior loan up to INR 3200 million (equivalent of $50 million) and may assist in mobilisation of the syndicated parallel loan of up to another INR 64000 million (equivalent of $100 million),” the disclosure said.

Proceeds from the IFC investment will used by the company for the development, financing, construction, operation and maintenance of the 250 MWac solar photovoltaic plant located near villages Badwar and Barsaita (unit I in the solar park).

The solar park is proposed on 1500 hectares of land across five villages, namely, Badwar, Barsaita Desh, Barsaita Pahad, Etar Pahad and Ramnagar Pahad under Gurh Tehsil in Rewa district. The solar park is equally divided into 3 units, each of which will have a 250 MWac solar power plant.

MRPL is 100 per cent subsidiary of Mahindra Susten Pvt Ltd, which is a cleantech arm of the Mahindra group and a solar EPC services company/contractor in India which offers solar power, renewable energy solutions and utility scale solar plants.

The company will enter into turnkey EPC contract with Mahindra Susten to execute the construction of the project and operation & maintenance of the project. The project is expected to be complete by December 2018. The plant is expected to employ around 500-550 workers during peak construction, while about 65 employees will be required to operate the plan during operations.

In July last year, IFC had said that it will invest up to $6 billion in the next five years on various sustainable and renewable energy programmes in India. In August, it also announced a $50 million loan to Arinsun Clean Energy to develop a 250 MW solar project in the Rewa Solar Park in Madhya Pradesh.

In all, the IFC has promised mobilization of $550 million in private investment for the solar park project.

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