Mahindra Renewables has announced that it has achieved financial closure for its 250 MW solar power project in Rewa District of Madhya Pradesh for Rs 950 crore.
The financial closure has been achieved with Yes Bank for assistance in the form of project debt to the extent of Rs 750 crore and from other financial institutions up to Rs 200 crore. The project is part of the 750 MW Rewa solar park which is one of the largest solar parks in the world.
The 250 MW project of Mahindra Renewables is expected to generate over 525 million units and is envisaged to sell 78 per cent of the power generated to Madhya Pradesh Electricity Distribution Utilities and the balance to Delhi Metro Rail Corporation.
Mahindra Renewables had participated in the competitive bidding process invited by Rewa Ultra Mega Solar Ltd. (50:50 JV between Madhya Pradesh Urja Vikash Nigam Ltd. & Solar Energy Corporation of India) to set up 750 MW grid connected Solar PV projects.
Mahindra Renewables won 250 MW capacity at levelised tariff of Rs 3.3 per Kwh with other winning bidders being ACTIS PE backed Solenergi and ACME Group. The project is expected to commence commercial operations by December 2018.
Zhooben Bhiwandiwala, President – Mahindra Partners, stated, “Our aim is to build a sustainable presence in the Renewable Energy space. The Rewa Solar Project is a significant step in this direction as this is one of the largest solar parks having the most bankable PPA terms and can become a model template for all upcoming solar projects. This project also demonstrates Mahindra Group’s commitment and focus towards renewable energy by partnering with leading banks like YES BANK, which has a significant renewable energy footprint.”
Speaking about the transaction, Rana Kapoor, MD & CEO, YES BANK said, “YES BANK has established itself as India’s pre-eminent Green Bank with pioneering initiatives in the Sustainable Finance domain. The Rewa Solar Project by Mahindra Renewables is another step towards augmenting India’s RE capacity, and our support to this project builds on YES BANK’s commitment to mobilize USD 5 Bn for financing Solar Power projects in India by 2030 which we announced at the the International Solar Alliance (ISA) conference organized at World Future Energy Summit 2018 in Abu Dhabi and at the ISA Founding Conference on March 11, 2018 in New Delhi.”
Yes Bank has been a partner to Mahindra Group’s renewable energy venture since 2011 and has till date underwritten five solar projects for the group with a total capacity of 382 MW. Presently, Mahindra Group has 257 MW of operational solar capacity and 250 MW Rewa solar project under implementation.