Mahindra Renewables achieves financial closure for 250 mw Rewa solar plant

Yes Bank extends Rs 7.5 bn loan; project is part of 750-Mw Rewa solar park, one of the largest in the world

Mahindra Renewables Pvt Ltd, a wholly owned subsidiary of Mahindra Susten Pvt Ltd, has achieved financial closure for its 250 Mw Solar Power Project, in Rewa, Madhya Pradesh. The project received financial assistance in the form of a project debt of Rs 7.5 billion from YES Bank Ltd and Rs 2 billion from other financial institutions, said the company in a public statement.

The project is part of the 750-Mw Rewa solar park, which is one of the largest in the world. The 250 Mw project is expected to generate over 525 million units, 78 per cent of which will be sold to Madhya Pradesh Electricity Distribution Utilities and the balance to Delhi Metro Rail Corporation Ltd.

Mahindra Renewables had participated in the competitive bidding process invited by Rewa Ultra Mega Solar Ltd, quoting a levelised tariff of Rs 3.3 per unit. The other winners were Solenergi and ACME Group. The project is expected to commence commercial operations by December 2018.

“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,” said Zhooben Bhiwandiwala, President–Mahindra Partners.

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.

“Our support to this project builds on YES BANK’s commitment to mobilize $5 billion for financing solar power projects in India by 2030 which we announced at 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,” said Rana Kapoor, MD&CEO, YES Bank.