World Bank to Provide $25 Million Loan to Develop Transmission at Rewa Solar Park
The World Bank Group is providing $25 million (~Rs.1.65 billion) to develop transmission infrastructure at the Rewa Solar Park. The loan is being provided at an interest rate of 0.25 percent for a period of 40 years.
The World Bank Group has earmarked $100 million (~Rs.6.6 billion) for lending to the Rewa Solar Park out of which $75 million (~Rs.4.95 billion) will be provided as loan for a period of 19 years at interest rate calculated at the time of signing of papers, stated an official at the World Bank Group in India.
There is a 40-year time limit to repay the $25 million (~Rs.1.65 billion) that is being provided at 0.25 percent, added the World Bank Group official. The official further stated that the money will be transferred to Indian Renewable Energy Development Agency (IREDA) which will be the initial borrower. The IREDA will then lend the amount further to the entities involved in developing the shared infrastructure facilities like transmission in the Rewa Solar Park.
Mercom has previously reported on World Bank providing loan to the Rewa Solar Park, which was one of the reasons behind record low tariffs.
Image Credit: World Bank