IFC, a member of the World Bank Group, on Saturday announced a tie-up with the Madhya Pradesh government to set up a 750-Mw Rewa ultra-mega solar power project. This will be the largest single-site solar power project in the world.
IFC will extend its global expertise to structure and implement the transaction to help attract private investments of about $750 million. IFC’s work on this project will be supported by its partnership with Department of Foreign Trade, Government of Australia.
“Successful implementation of the Rewa Ultra-Mega Power project will be a key milestone for Madhya Pradesh’s outstanding efforts and leadership in renewable energy and the central government’s remarkable vision on solar power. The project will provide competitively-priced renewable power to state and central entities,” said Rajendra Shukla, minister of energy, mines, and minerals, Government of Madhya Pradesh.
“IFC’s global expertise in PPPs, leadership in renewable energy, and convening power with investors, will help us implement this unique project.”
Anthony JC de Sa, chief secretary, Madhya Pradesh said, “the project is highly attractive as the state government has made about 1300 hectares of land available to the project, out of a total of 1500 hectares. Power Grid Corporation Limited is constructing its transmission substation within the project boundary.”
The project is supported by the Ministry of New and Renewable Energy, Government of India, under its solar parks development scheme. Madhya Pradesh Urja Vika Nigam Limited (MPUVN) and the Solar Energy Corporation of India have created a joint venture company — Rewa Ultra-Mega Solar Power Limited — to implement the project.
IFC will work closely with the New and Renewable Energy Department of the state government and MPUVN on this project. The plant will help Madhya Pradesh meet its renewable purchase obligations, which mandates that each state generate a certain percentage of its electricity through renewable sources.
India is IFC's top country exposure. IFC's committed portfolio in India is over $5 billion as of June 30, 2015. In FY15, IFC committed $1.4 billion in new investments. In addition to strengthening local capital markets in India, IFC is focused on boosting financing in infrastructure and logistics, promoting financial inclusion, helping create conditions to attract increased private capital, and helping structure public-private partnerships.