Indian Renewable Energy Development Agency Limited (IREDA) and Rewa Ultra Mega Solar Limited (RUMSL) signed an agreement today for financing the shared infrastructure of two large Solar Parks in Madhya Pradesh.
Ministry of New & Renewable Energy (MNRE), World Bank & IREDA have been able to work out a proposal to channelize US$ 100 Million for creating common infrastructure for ultra-mega solar parks in India to achieve the 100 GW solar capacity addition target by 2022, set by the Prime Minister Shri Narendra Modi. Under the World Bank Line of Credit, IREDA has sanctioned its first loan of Rs. 210.62 Cr. to RUMSL to finance two such solar parks in the state of Madhya Pradesh. The agreement was signed by Shri S K Bhargava, Director (Finance), IREDA and Shri Avaneesh Shukla, Executive Engineer, RUMSL in the presence of Shri Upendra Tripathy, Interim Director General, International Solar Alliance (ISA).
The broad terms and condition of the agreement include fixed interest rate of 8.5% p.a. for entire loan tenure, moratorium from principal repayments upto 5 years and loan repayment period of upto 20 years.
Speaking on the occasion, Shri K S Popli, CMD, IREDA appreciated the initiative of MNRE, support of The World Bank and more specifically of DEA to reduce the Sovereign Guarantee fee to 0.5%. He further stated that this support from DEA will enable to expedite development of such proposals in other states also.
Shri Upendra Tripathy, Interim Director General, ISA mentioned that India being in leading position in solar technologies, there is immediate attention for the development of 121 projects of solar technologies in 121 ISA member countries by April 21,2018. He congratulated IREDA and RUMSL for achieving the feat in short time frame and also for the innovative Payment Security Mechanism which will ensure timely payment to the developer.
Shri Manu Srivastava, Principal Secretary and Managing Director, RUMSL mentioned that RUMSL, at present, is implementing two solar parks i.e. Rewa with capacity of 750 MW and Mandsaur with 250 MW capacity in the state of Madhya Pradesh. With the solar park model, Payment Security Mechanism and the Line of Credit from The World Bank, the tariff for Rewa project is discovered as low as Rs.3.30 on levelized basis. Out of the total power proposed to be generated at Rewa solar park, 24% has been agreed to be purchased by Delhi Metro Rail Corporation and balance 76% by Madhya Pradesh Power Management Company Ltd ( MPPMCL).
RM
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