Reliance Power plans to invest Rs 8,000 crore to set up 500 MW solar power projects in Rajasthan over the next three years, sources close to the development said.
The planned investment is the largest investment in solar projects in India and one of the largest in the world. The first phase of the project comprises setting up a 40 MW plant by 2012, for which the US Exim Bank has approved a loan for $84 million, and a 100 MW project in the following year. The rate of interest rate for the loan is 4-5% and the tenure would be 17 years.
"We are committed to development of large scale solar power projects and are first to embark on solar project of this magnitude. The recent sanction of loan by US Exim bank re-confirms our ability to successfully raise long term debt at attractive interest rates for its projects," a spokesperson from Reliance Power said.
The company has signed power purchase agreement for the 100 MW project with NTPC Vidyut Vyapar Nigam Ltd at a tariff of Rs 11.97 per unit. For the 40 MW plant, the power purchase agreement has been signed with Reliance Infrastructure.