Hero Future Energies Global, a subsidiary of Hero Group, will offer up to $200 million in a solar project in Rajasthan. International Finance Corporation (IFC) will be shoring up the solar project while Clean Solar Power, a subdivision of Hero Future Energies Global, will be developing the project, as reported by the Indian daily news, Business Standard.
Hero Futures Global is essentially a renewable energy developer. It possesses a capacity of over 1.2 GW and is in the process of applying up to 1GW. It currently suggests construction, development, maintenance and operation of a solar farm, comprising 250 MW, in Bhadla, Rajasthan. The generated solar power, from the solar farm, will be later sold to Solar Energy Corporation of India Limited (SECI), in accordance with a twenty-five year Power Purchase Agreement.
The project cost is estimated to be $200 million and IFC will endow $43.3 million to the company as debt finance and also, for mobilization of senior loans, IFC, the investment arm of World Bank, said.
"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, as reported by the Indian daily news, Business Standard.