ADB approves $147m loan for 400 MW solar project development in India

The project will supply electricity to the state-owned power distributor. 

The Asian Development Bank (ADB) signed a loan of up to $147m (INR12.23b) with SAEL Industries Limited, through its subsidiarySAEL Solar P4 Private Limited for the construction of a 400-megawatt greenfield solar power plant in Gujarat.

In a statement, the ADB said the SAEL subsidiary will build and operate the power plant to be developed within the Khavda Ultra Mega Solar Park, with the electricity to be delivered to state-owned power distributor Gujarat Urja Vikas Nigam under a 25-year purchase deal.

The power plant is expected to produce an average of 953 GW-hours of electricity annually and reduce around 783,000 tonnes of carbon dioxide.

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“The private sector must play a pivotal role in the transition from fossil fuels to renewable energy generation, particularly in Asia and the Pacific region, which contributes over half of global greenhouse gas emissions. As the region’s climate bank, ADB provides long-term local currency financing to stimulate private sector investment in clean energy,” said ADB Director General for Private Sector Operations Suzanne Gaboury.

Aside from ADB, a parallel loan of up to around $73.5m (INR6.11b) underwritten by Tata Capital will support the project.

$1 = INR83.14