IFC to Lend $36 Million to Mahindra Renewables for a 250 MW Solar Project in Rajasthan

The scheduled commercial operation date of the project is October 25, 2020


The International Finance Corporation (IFC), the financial arm of the World Bank, has announced its plan to lend $36 million (~₹2.57 billion) for a 250 MW solar project by Mahindra Renewables Private Limited (MRPL) in Rajasthan.

The project is expected to be developed in the district of Jodhpur in the state. It 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 Susten won the bids to develop 250 MW quoting ₹2.53 (~$0.0368)/kWh. SECI had tendered the 2 GW capacity in January 2018. The capacity tendered was split into eight projects of 250 MW each. Mercom had also reported that the tender was oversubscribed by 1.8 GW.

The project is to be commissioned in stages starting September 2020, and the scheduled commercial operation date is October 25, 2020, as per the power purchase agreement (PPA) that was signed in December 2018.

Mahindra Susten Private Limited (MSPL) is responsible for the engineering, design, procurement, and construction (EPC) of the project while, Mahindra Teqo Private Limited (MTPL), another wholly-owned subsidiary of MSPL, will handle the operation, and maintenance for the lifetime of the project, according to the IFC’s disclosure.

The solar power generated at the project is expected to be evacuated at 220 kV levels to 220, 400, 765 kV Noore Ki Bhurj Power Grid (PGCIL) substations located about 15 km away from the site.

The IFC also said that it might provide a parallel loan of $93 million (~₹6.66 billion) to the company to fund the development, financing, and construction of the project. The estimated project cost is around $171 million.

Earlier, Mercom reported that Clean Solar Power, a step-down subsidiary of Hero Future Energies Global Ltd. (HFE), was set to receive a debt financing of up to $43.3 million (~₹3.09 billion) from the IFC. Clean Solar Power had proposed the development, construction, operation, and maintenance of a 250 MW greenfield solar project located in Rajasthan’s Bhadla.

Image credit: Mahindra Susten