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India, World Bank ink loan pact worth $98 mn for clean energy projects

The solar parks will be mostly under the Ministry of New and Renewable Energys Solar Park Scheme.

Press Trust of India  |  New Delhi 

PE investment in wind, solar up 47% in 2017

and the World today signed a $98 million loan pact, and a $2 million grant agreement to help the country increase power generation capacity through cleaner, renewable energy sources.

The Shared Infrastructure for Solar Parks Project will Indian Renewable Energy Development Agency Ltd (IREDA), to provide sub-loans to states to invest in various solar parks, the World said in a statement.

The solar parks will be mostly under the Ministry of New and Renewable Energys (MNRE) Solar Park Scheme, it said.

The first two solar parks are in the Rewa and Mandsaur districts of Madhya Pradesh, with targeted installed capacities of 750 MW and 250 MW respectively, it said.

Other states where potential solar parks could be supported under this project are in Odisha, Chhattisgarh, and Haryana.

The is committed to setting up an enabling environment for solar technology penetration in the country, said Sameer Kumar Khare -- Joint Secretary in the Department of Economic Affairs.

"This Project will help establish large-scale solar parks and support the governments plan to install 100 gigawatts (GW) of solar power out of a total renewable-energy target of 175 GW by 2022," he said in the statement.

The IREDA will utilise the funding under this project to develop the common infrastructure such as power pooling substations, intra-park transmission infrastructure and provide access to roads, water supply and drainage.

While some states intend to provide a full range of infrastructure services to the selected private or public sector developers, others plan to provide only pooling stations to facilitate internal evacuation.

With about 331 GW of installed capacity, Indias power system is among the largest in the world. Yet, the per capita electricity consumption is less than one-third of the global average.

An estimated 300 million people are not connected to the national electrical grid, the statement said, adding that with a rapidly growing economy the need for reliable power is only going to grow.

The USD 75 million loan from the International for Reconstruction and Development (IBRD), has a 5-year grace period, and a maturity of 19 years.

The USD 23 million loan from the Clean Technology Fund (CTF) has a 10-year grace period, and a maturity of 40 years. The USD 2 million is an interest-free CTF grant.

First Published: Mon, November 20 2017. 18:57 IST