New Delhi, February 1: The Indian Renewable Energy Development Agency (IREDA) and Rewa Ultra Mega Solar Limited (RUMSL) have signed a sub-loan agreement for financing the shared infrastructure of two solar power projects in Madhya Pradesh.

The development is a part of the project laid by Ministry of New and Renewable Energy, the World Bank and IREDA that have worked out a proposal to channelize US$ 100 Million for creating common infrastructure for ultra-mega solar parks in India to achieve the 100 GW solar capacity addition target by 2022.

The broad terms and condition of the agreement include fixed interest rate of 8.5% p.a. for entire loan tenure, suspension from principal repayments upto 5 years and loan repayment period of upto 20 years.

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. ISA is working with banks, industry associations from India and abroad for the same

Upendra Tripathy, who is heading the International Solar Alliance (ISA), said that the alliance will try and finalize 121 solar projects in the next three months, which will then allow banks to fund these projects. ISA has a target of mobilizing $1,000 billion for its 121 members by 2030. He congratulated IREDA and RUMSL for achieving the accomplishment in short time frame and also for the innovative Payment Security Mechanism which will ensure timely payment to the developer.