India’s plans to implement ultra mega solar power projects has received a major boost following a commitment from the International Finance Corporation.
The International Finance Corporation (IFC) has signed an agreement with the government of the state of Madhya Pradesh in India to set up a 750 MW solar PV power plant — expected to be among the first ultra mega solar power projects to be commissioned in India.
The IFC will extend its global expertise to structure and implement the transaction to help attract private investments of about $750 million. IFC’s work on this project will be supported by its partnership with Australia’s Department of Foreign Trade.
The government of Madhya Pradesh has already approved the project following which the process of land acquisition was initiated. The project is expected to required a total investment of around $500-600 million as per the current capital cost requirements. In 2014, the IFC stated that it was ready to provide debt finance for the project. The Solar Energy Corporation of India (SECI) is expected to float tender for the project soon.
The SECI is working on around 2 dozen ultra mega solar power projects which will have installed capacity of up to 4 GW each.