IREDA, RUMSL sign agreement to finance two large-scale solar parks in Madhya Pradesh
The Indian Renewable Energy Development Agency Limited (IREDA) and Rewa Ultra Mega Solar Limited (RUMSL) signed an agreement on January 31, 2018 for financing the shared infrastructure of two large Solar Parks in Madhya Pradesh.
The agreement was signed by S K Bhargava, Director (Finance), IREDA and Avaneesh Shukla, Executive Engineer, RUMSL in the presence of Upendra Tripathy, Interim Director General, International Solar Alliance (ISA).
The development is a part of an effort by the Ministry of New & Renewable Energy (MNRE), World Bank & IREDA to channelize US$ 100 Million for creating a 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 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 broad terms and condition of the agreement include:
- Fixed interest rate of 8.5% p.a. for entire loan tenure.
- Moratorium from principal repayments up to 5 years and loan repayment period of up to 20 years.
The two solar parks being set up in Madhya Pradesh by RUMSL include Rewa with a capacity of 750 MW and Mandsaur with a capacity of 250 MW. Out of the total power proposed to be generated at Rewa solar park, 24 per cent would be purchased by Delhi Metro Rail Corporation and balance 76 per cent by Madhya Pradesh Power Management Company Ltd (MPPMCL).
• IREDA is a Public Limited Government Company. It is under the administrative control of the Ministry of New and Renewable Energy (MNRE).
• It was established as a Non-Banking Financial Institution in 1987 to promote, develop and extend financial assistance to projects related to new and renewable sources of energy and energy efficiency/conservation.
• Its main objective includes giving financial support to specific projects and schemes for generating electricity and energy through new and renewable sources and conserving energy through energy efficiency.
About Rewa Solar Plant
• The mega solar power plant is proposed to come up in the Rewa district of Madhya Pradesh, with a total solar installed capacity of 750 MW.
• Once completed in 2018, it would become one of the largest single-site solar power plants in India and the world.
• The implementing agency of the project – the Rewa Ultra Mega Solar Limited (RUMSL) is a joint venture between the Madhya Pradesh Urja Vikash Nigam Limited (MPUVNL) and the Solar Energy Corporation of India (SECI).
• In order to facilitate the evacuation of power from the project site to range of consumers, the Power Grid Corporation Of India Limited (PGCIL) has been awarded the contract for developing the 220/400 KV substation.