Mumbai : Mahindra Renewables, a wholly-owned subsidiary of Mahindra Susten, has achieved financial closure for its 250 MW solar power project in Madhya Pradesh for Rs 950 crore.
The financial closure has been achieved with Yes Bank for assistance in the form of project debt to the extent of Rs 750 crore and from other financial institutions up to Rs 200 crore, the company said on Friday.
The project is part of the 750 MW Rewa solar park which is one of the largest solar parks in the country.
The 250 MW project of Mahindra Renewables is expected to generate over 525 million units and is envisaged to sell 78 per cent of the power generated to Madhya Pradesh Electricity Distribution Utilities and the balance to Delhi Metro Rail Corporation.
The project is expected to commence commercial operations by December 2018.
“The Rewa project is a significant step in building our sustainable presence in the renewable energy space. This project also demonstrates the Group’s commitment and focus towards the sector,” Mahindra Partners, president Zhooben Bhiwandiwala said.
Commenting on the transaction, Yes Bank managing director and CEO Rana Kapoor said, “the Rewa project by Mahindra Renewables is a step towards our commitment to mobilise $5 billion for financing solar power projects in India by 2030.”
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.
