IFC proposes $50m investment in India solar project

According to a disclosure, the pending investment would be transacted via a subscription to non-convertible debentures and include efforts to mobilize an additional $100 million of loans from other backers. The total project cost has been estimated at $200 million.

IFC is also expected to provide support in establishing best-practice environmental and social policies at the site. The operation, known as the Rewa Ultra Mega Solar Park, is scheduled to be commissioned by the end of 2018.

Rewa will comprise three units with 250 megawatts of power capacity each for a combined 750MW plant. It will be developed by Solenergi Power, which has signed power purchase agreements for the project with groups including Delhi Metro Railways Corporation and Madhya Pradesh Power Management.

IFC has been active in the Indian solar space in recent months. In February, it mooted $100 million and $15 million commitments to projects backed by L&T Infrastructure Finance and Clean Max Enviro Energy Solutions, respectively. This was followed by a June proposal to invest $31 million in Tata Cleantech Capital.

Solar power is considered a fast-growing industry in India, with about 9,000 MW of capacity currently grid-connected and a further 20,000 MW targeted for installment by the end of this year. The country's overall energy sector is expected to require $250 billion of investment during the next five years, primarily from the private sector.

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• Topics
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