Government of India and World Bank sign $100 million agreement to set-up large-scale solar parks

The Government of India and the World Bank signed a $98 million Loan Agreement and $2 million Grant Agreement to help India increase its power generation capacity through solar power. The »Shared Infrastructure for Solar Parks Project« will finance the Indian Renewable Energy Development Agency Limited (IREDA), to provide sub-loans to select states to invest in various solar parks, mostly under the Ministry of New and Renewable Energy’s (MNRE) Solar Park Scheme. The first two solar parks to be supported under the project are in the Rewa and Mandsaur districts of Madhya Pradesh, with targeted installed capacities of 750 MW and 250 MW, respectively. In addition, other states where potential solar parks could be supported under this project are in Odisha, Chhattisgarh, and Haryana.
The agreement is backed by three organizations. The $75 million loan from the International Bank for Reconstruction and Development (IBRD), has a 5-year grace period, and a maturity of 19 years. The $23 million loan from the Clean Technology Fund (CTF) has a 10-year grace period, and a maturity of 40 years. The $2 million is an interest-free CTF grant.

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