ACME Solar to set up $200-mn power project in MP with IFC backing

DMRC, MPPMCL among off-takers for the project

ACME Solar has been granted, through international competitive bidding, a 250-megawatt (Mw) solar power project within the 750-Mwac Rewa Ultra Mega Solar Park (solar park) in the Rewa district of Madhya Pradesh. IFC plans to invest up to $50 million in the company, besides helping it mobilise $100 million.

The estimated project cost is around $200 million. The proposed IFC investment involves providing an IFC loan/subscribing to non-convertible debentures (NCDs) of up to $50 million and mobilisation of loans of up to $100 million from other lenders. Proceeds from the IFC investment will be used by the company for the construction of the project.

The project involves the development, financing, construction, operation and maintenance of a 250M2ac solar photovoltaic plant by ACME Solar within the Rewa Ultra Mega Solar Park.

The project will be developed by ACME Jaipur Solar Power Private Limited, a wholly owned subsidiary of ACME Solar.

ACME Solar is an independent power producer, which builds, owns and operates solar power plants in India. It has an operating capacity of over 809-Mw solar projects in India. ACME Solar is a wholly owned subsidiary of ACME Cleantech Solutions Private Limited (ACSPL).

The solar park is being developed by Rewa Ultra Mega Solar Limited (RUMSL), a joint venture between Madhya Pradesh Urja Vikas Nigam Limited (MPUVNL) and the Solar Energy Corporation of India (SECI).

The project is expected to be commissioned by November 2018. The off-takers for the project will be Madhya Pradesh Power Management Company Limited (MPPMCL) and Delhi Metro Rail Corporation (DMRC).

The state government appointed IFC as the lead transaction advisor to enable RUMSL and the Madhya Pradesh government to facilitate the entire private investment for the Rewa solar project. IFC's role includes advising on the project structure, besides identifying, recommending and helping implement issues related to solutions for key commercial, legal, regulatory, technical and system operations. Along with these, IFC is also responsible for designing a transparent bidding process to help select private entities to develop the units in the Rewa solar project.