Hero Future Energies and IFC to Devote Rs.1,404 Crores in Rajasthan Solar Project

Hero Future Energies Global has announced its plans to capitalize near to $200 million (Rs 1404 crore) for its latest solar project in Rajasthan. The company presently has an installed capacity of more than 1.2 GW and is in the course of implementing about another 1 GW.

The project will be buoyed by the World Bank’s International Finance Corporation (IFC), which will invest about $43.3 million (Rs 300 crore). The project will be established by Clean Solar Power (Jodhpur), a subsidiary of HFE.

Hero Future Energies has planned for the development, construction, operation and maintenance of a 250 MW solar farm located in Bhadla Solar Park in Rajasthan. The solar farm will sell power to Solar Energy Corporation of India Limited (SECI) pursuant to a 25-year Power Purchase Agreement (PPA).

Total estimated project cost is roughly $200 million and IFC investment comprises a debt financing of up to $43.3 million to the company and mobilization of senior loans on best efforts basis, said the World Bank’s investment arm.

“IFC will provide fixed interest rate local currency loan with long term maturity of up to 20 years which is not easily available in the market. This will improve project viability against any adverse interest rate fluctuations. Moreover, longer tenor loans can help increase the overall competitiveness of the project,” said IFC.