Mahindra Renewables plans $171 mn investment for solar project in Rajasthan

• Mahindra Renewables Private Limited (MRPL), a wholly owned subsidiary of Mahindra Group (worth $20.7 billion) cleantech arm Mahindra Susten Private Ltd (MSPL) is planning to invest around $171 million to set up a 250 mega watt (MW) solar power project in Rajasthan. The project will be backed by International Finance Corporation (IFC).

The proposed project will consume around 1200 acres (486 hectares) at Bhiv ji ka gaon Village in Bap Tehsil, Jodhpur District in Rajasthan.

IFC's estimated project cost is Rupee equivalent of around $171 million. The project involves an IFC ‘A’ Loan investment of Rupee equivalent of $36 million to the company and assistance in mobilisation of the syndicated parallel loan of Rupee equivalent of $93 million for the development, financing, construction of the Project.

IFC will provide fixed interest rate local/Rupee currency loan with long term maturity of up to 20 years. This will improve Project viability against interest rate fluctuations. Moreover, longer tenure loans can help increase the overall competitiveness of the project. IFC’s involvement will facilitate involvement of other lenders to finance the project, especially in a market context where local lenders are facing sectoral headwinds, said the World Bank's investment arm.

MRPL is an existing portfolio client of IFC having committed 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.

MRPL was awarded the development of 250MW solar photovoltaic power project in the state of Rajasthan under an electronic reverse auction held by the Solar Energy Corporation of India (SECI). The auction was part of SECI’s 2 gigawatt (GW) Interstate Transmission System (ISTS)-connected multiple solar projects across the country. The bid for this project was put by MSPL and the project is housed in MRPL as per the provisions of the tender.

Mahindra Susten is a leading solar EPC services company/contractor in India which offers solar power, renewable energy solutions and utility scale solar plants.