Mahindra Renewables Invests $171 million to Set Up 250 MW Solar Plant in Rajasthan

Mahindra Renewables Private Limited (MRPL), cleantech arm of Mahindra Susten Private Ltd (MSPL) is planning to invest around $171 million to set up a 250 MW solar power project in Rajasthan. The project is backed by the International Finance Corporation (IFC).

This solar power project was awarded to MRPL under an electronic reverse auction held by the Solar Energy Corporation of India (SECI).The proposed project will consume around 1200 acres (486 hectares) at Bhiv ji ka gaon Village in Bap Tehsil, Jodhpur District in Rajasthan. The project involves an IFC ‘A’ Loan investment of $36 million to the company and assistance in mobilization of the syndicated parallel loan of of $93 million for the development, financing, construction of the project.

Since MRPL is part of an existing portfolio client of IFC will provide fixed interest rate for a 20-year local currency loan in February 2018, for development of a 250 MW solar project within the Rewa Ultra Mega Solar Park in the State of Madhya Pradesh.

It’s anticipated that IFC’s involvement will invite other lender participation as well to finance the project, especially in a market where local lenders are facing sectoral headwinds, according to a news media report.