IREDA and RUMSl are signing sub-loan agreement on 31st January 2018 at India Habitat Centre, New Delhi at 12 noon. Principal Secretary of New and Renewable Energy Department, Madhya Pradesh Manu Srivastava informed that signing of the loan agreement for one of the world’s largest solar power plants is a major step towards fulfilling Prime Minister’s mission of 100 GW solar by the year 2022.
The loan signing agreement underscores the commitment of Chief Minister of State towards securing green and cheaper power to the state. Madhya Pradesh is looking forward for World Bank’s support for executing other sanctioned parks in the state.World Bank is providing a loan of US$100 million through IREDA for financing infrastructure of Solar Parks in India. This includes US$75 million loan from the International Bank for Reconstruction and Development (IBRD) and US$23 million loan from the Clean Technology Fund (CTF), as also an interest-free CTF grant of US$2 million.
IREDA is the nodal Project Implementation Unit for the loan. The first two solar parks to be supported under the World Bank Funding Scheme are the 750 MW Rewa Ultra-Mega Solar Park and 250 MW Mandsaur Solar Park in Madhya Pradesh. Rewa Ultra Mega Solar limited (RUMSl), a joint venture between MP Urja Vikas Nigam and SECI, is implementing solar parks in Madhya Pradesh.
Rewa project is known for its unique risk mitigation mechanism and robust project structuring.
The lowering of the tariff in this project was the inflection point in the history of solar energy in India. It owns the pride of being included in Prime Minister’s Book of Innovation in 2017. Further, the Project has been awarded World Bank Group’s President award for Innovation and Excellence for its transaction structure.
