Arinsun Clean Energy to develop $200-mn worth 250-Mw solar park in MP

Proceeds from IFC investment will be used by the company for the project

Actis Energy Fund-backed Arinsun Clean Energy, a subsidiary of Solenergi Power (SPPL), will develop a 250-megawatts (Mw) solar park at a cost of $200 million. International Finance Corporation (IFC) is planning to back the project, which will be located at the 750-Mw Rewa Ultra Mega Solar Park in Madhya Pradesh. 

The solar park is located across five villages, namely, Badwar, Barsaita Desh, Barsaita Pahad, Etar Pahad and Ramnagar Pahad under Gurh Tehsil in Rewa District, Madhya Pradesh.

The solar park is equally divided into three units, each of which will have a 250-Mw solar power plant.

SPPL has won project development rights for Unit III of the park. The estimated project cost is around $200 million.

The proposed IFC investment involves providing an IFC A loan, subscribing to non-convertible debentures (NCDs) of up to $50 million and mobilisation of a loan 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 solar park is being developed by Rewa Ultra Mega Solar (RUMSL), a joint venture between state-owned Madhya Pradesh Urja Vikas Nigam (MPUVNL) and Solar Energy Corporation of India (SECI).

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

The Government of Madhya Pradesh appointed IFC as the lead transaction advisor to enable RUMSL and itself to facilitate the entire private investment for the Rewa Solar project.

IFC's role includes advising on a robust project structure, identifying, recommending and helping in implementing solutions for key commercial, legal, regulatory, technical and system operations, and designing a transparent auction process to help select private entities to develop the units in the Rewa Solar project.