Mahindra to Develop IFC-Backed 250 MW Solar Project in Rajasthan

Mahindra Renewables is planning to invest around USD 171 million to set up an IFC-backed 250 MW solar power project in Rajasthan

Mahindra Renewables Private Limited (MRPL), a wholly-owned subsidiary of Mahindra Group cleantech arm Mahindra Susten Private Ltd (MSPL) has announced that it is planning to invest around USD 171 million to set up an IFC-backed 250 MW solar power project in Rajasthan around 1200 acres at Bhiv Ji ka Gaon Village in Bap Tehsil, Jodhpur District.

The International Finance Corporation (IFC), the financial arm of the World Bank, has announced that it is planning to lend USD 36 million for the 250 MW solar project by Mahindra Renewables in Rajasthan. The project involves an IFC ‘A’ Loan investment of Rupee equivalent of the USD 36 million to the company and assistance in the mobilisation of the syndicated parallel loan of Rupee equivalent of USD 93 million for the development, financing, construction of the Project.

The IFC will provide fixed interest rate local/Rupee currency loans with long term maturity of up to 20 years. This will improve Project viability against interest rate fluctuations.

The project is part of the  Solar Energy Corporation of India’s (SECI) 2 GW interstate transmission system (ISTS) connected solar project that was auctioned in 2018.

In that auction, Mahindra Susten, along with ACME Solar, Shapoorji Pallonji, Hero Solar, Mahoba Solar (Adani), and Azure Power, emerged as the winners. Mahindra was awarded 250 MW capacity in the tender with a bid amount of Rs 2.53/kWh.

MRPL is an existing portfolio client of IFC having committed a 20-year local currency loan in February 2018 for the development of a 250 MW solar project within the Rewa Ultra Mega Solar Park in the State of Madhya Pradesh.

In June last year, Mahindra Susten had announced that it had entered into a partnership with Japan-based Mitsui & Co to jointly develop and operate solar power generation projects in India. A player in the Indian solar energy sector, the Mahindra Group firm will continue to hold 51 percent stake in Marvel Solren Private Ltd, with Mitsui holding the balance equity, said a statement.