Asian Development Bank (ADB) has approved a loan of $175 million to Mytrah Energy (India) Ltd (MEIL), a renewable energy producer, the company announced on Thursday.
The funding will help Mytrah Energy to develop a portfolio of new wind projects in Rajasthan, Madhya Pradesh, Andhra Pradesh and Karnataka, and solar power projects in Telangana and Punjab.
“MEIL has a strong track record of developing renewable energy projects and this financing will allow it to expand its capacity, resulting in substantial benefits including reduced fossil fuel use and strengthened energy security for India,” said Mayank Choudhary, senior investment specialist in ADB’s private sector operations department.
“It also supports ADB’s strategy of step up financing for renewable energy and increase support for private investment in the sector,” he added. MEIL currently has 11 projects across six states and has around 200 wind masts installed across multiple states in the country.
“This is another significant milestone in the development of the company. The involvement of ADB is further evidence of the growing maturity and quality of our business. This loan facility underpins our growth plan; the Company expects to reach its medium term capacity target of 1000 MW in the coming 12 months,” said Ravi Kailas, chairman, MEIL.
The Indian renewable energy companies are on fundraising spree from the last few months.
In Feb this year, LiveMint reported that IDFC Alternatives Ltd, the asset management arm of infrastructure-focused lender IDFC Ltd, is in advanced talks with Welspun Renewables Energy Pvt Ltd to buy assets with 700 megawatts (MW) of generating capacity.