Mahindra getting IFC backing for Rajasthan solar project
Mahindra Susten, a subsidiary of Mahindra Renewables (MRPL), is to invest around $171 million in a 250MW solar project in Rajasthan. The IFC is providing a $36 million 20-year fixed interest A loan for the scheme and will also assist in mobilising a $93 million-equivalent rupee denominated syndicated loan. The deal is still subject to IFC board approval, expected on 21 February 2020.
Mahindra Susten won the project in a 2GW interstate transmission system (ISTS) connected tender by Solar Energy Corporation of India (SECI) in July 2018 with a winning tariff of INR2.53/kWh. The project will be located at Bhiv ji ka gaon Village in Baap town of Jodhpur district on 1,200 acres of land where there is high intensity of solar projects that are either operational or under development, like the Bhadla Solar Park.
MRPL has secured an interconnection agreement for the project. Operation and maintenance of the plant will be undertaken by Mahindra Susten subsidiary Mahindra Teqo Private Limited (MTPL) post project commissioning, which will be done in stages beginning September 2020 and will complete on 25 October 2020. The scheme is backed by 25-year power purchase agreement.
MRPL is an existing portfolio client of the IFC – in 2018 the IFC lent $50 million to MRPL for its 250MW solar project in Madhya Pradesh, part of the 750 MW Rewa Ultra Mega Solar Park in Rewa district.
