IFC considers financing 100MW solar project in Rajashtan

The International Finance Corporation (IFC), the private sector lending arm of the World Bank, is considering financing a 100 MW solar project in Rajashtan, India.

The project involves the development of a 100 MW solar power plant in the low income state of Rajasthan by Acme Solar Energy Private Limited, an existing IFC client.

The total project investment is estimated at Rs8.1 billion (US$133 million).

IFC is providing Rs2 billion (US$33 million) for the project. It also involves a possible syndication of up to Rs3.88 billion (US$64 million) taking the total to Rs5.9 billion (US$97 million) for the project.

The project is the second and final tranche of the overall debt funding in the amount of US$50 million which IFC had provided to Acme Solar to be used for various projects that ACME Solar is developing.

Acme Solar has a successful track record of implementing solar power projects in India. It has commissioned a 25 MW solar power plant in Madhya Pradesh and is developing a 25 MW solar power plant in Odisha.

The project is expected to be commissioned by April 28, 2015. The offtaker for the project will be Solar Energy Corporation of India, a government of India entity.

The company plans to sign the engineering, procurement and construction (EPC) and operations and maintenance (O&M) agreements for the project with Acme Cleantech Solutions Limited and ASEPL respectively.

IFC has been active in the Indian solar sector. In early September we reported that IFC will finance US$14.3 million for a 40-MW solar power plant project in Rajasthan. The project will be developed by Azure Clean Energy Private Ltd. an Azure Power India’s subsidiary.