Mahindra renewables reaches financial closure for Rewa project

That confirms the first 250 MW capacity completion at the project, expected to go online by the end of the year. The other two winners of similar power quantities, Acme Solar, and Solenergi are yet to confirm their financial closures and start of work.

The Rewa project, besides being a showpiece project for the state government of Madhya Pradesh as well as the central government itself, is well known for starting the trend of steeply lower bids, with bids for this project coming in below Rs 3 per unit for the first time.

This was mainly due to many developer friendly clauses and moves, from the easy availability of land and approvals, to  a deal with the fast expanding Delhi Metro Rail Corporation for picking up over  100  million KwH of the annual electricity produced. This would be close to 22% of the production at Rewa.

the project is also the first to get funding from the Clean technology Fund of India, and the largest by a state that does not have involvement of Central PSU’s. The World bank is also involved, with concessional funding for the transmission and evacuation of power for the project, being executed by Power Grid Corporation of India.

Mahindra’s financial closure has been enabled by a consortium of financial institutions, as is the norm, with Yes Bank leading the same.