Loan agreement signed between IREDA, Rewa Ultra Mega Solar Limited

Source: The Hitavada      Date: 01 Feb 2018 11:41:33

Staff Reporter

A loan agreement has been signed between Rewa Ultra Mega Solar Limited (RUMSL) and Indian Renewable Energy Development Agency (IREDA) for infrastructure development of solar parks on Wednesday.
Under the agreement World Bank will provide loan to the tune of Rs 216 crore for infrastructure development of Rewa and Mandsaur solar power plants. The loan has to be serviced over 20 years at 8.5 % interest rate with a moratorium period of five years. The agreement was signed at Indian Habitat Centre at New Delhi in presence of IREDA Chairman K S Popli and Principal Secretary, New and Renewable Energy Govt of MP, Manu Shrivastav.

Simon Stolp of World Bank, Bhanu Yadav, Joint Secretary and Dilip Nigam, Advisor of Union Ministry of New and Renewable Energy, and Director General of International Solar Alliance Uppendra Tripathy were also present among other dignitaries. World Bank is providing a loan of $100 million for financing infrastructure of solar park in India, this includes $75 million loan, $23 million clean technology fund and $2 million interest free grant. The Rewa Ultra Mega Solar Limited of Madhya Pradesh is the first undertaking to have received the World Bank support for having established new parameters of innovation.

In addition to this the state government has provided for sovereign guarantee of payment of purchased power. The initiative of state is a pointer to seriousness in project establishment and has proved significant in lowering of tariff. Principal Secretary Manu Shrivastav told that the Rewa Ultra Mega Solar Parks has presented a development model that has achieved the tariff of Rs 2.97 per unit which is lowest in the country. He told that the tariff is lower than that of thermal and other power sources. Manu Shrivastav further added that State Government is committed to achievement of one lakh Megawatt of solar power by year 2022. Further, commissioning of four other solar parks of 2000MW capacity is under execution.