Indian Renewable Energy Development Agency (IREDA) and Rewa Ultra Mega Solar Ltd (RUMSL) have signed a sub-loan agreement for two solar power projects in Madhya Pradesh.

“A loan amount of Rs 216 crore ($35 million) has been signed for developing transmission and evacuation infrastructure. The loans have been refinanced at 8.5 per cent,” an IREDA official told BusinessLine .

An official statement said that the World Bank is providing a loan of $100 million through IREDA for the development of solar parks in India. This includes $75-million loan from the International Bank for Reconstruction and Development (IBRD) and $23-million loan from the Clean Technology Fund (CTF), as also an interest-free CTF grant of $2 million. IREDA is the nodal project implementation unit for the loan.

The two solar parks to be supported under the World Bank Funding Scheme are the 750 MW Rewa Ultra Mega Solar Park and 250 MW Mandsaur Solar Park in Madhya Pradesh. These two solar parks are being implemented by Rewa Ultra Mega Solar Ltd (RUMSL), a joint venture between MP Urja Vikas Nigam and SECI.