The Government of India has signed a $98m loan agreement with World Bank to support the country’s Shared Infrastructure for Solar Parks Project.
A $2m grant is also included in the latest deal to help India increase its power generation capacity from cleaner and renewable sources of energy.
India’s Shared Infrastructure for Solar Parks Project will provide funds to the Indian Renewable Energy Development Agency (IREDA) to offer sub-loans to select states to invest in a number of solar parks.
The project will first support two solar parks in Rewa and Mandsaur districts of Madhya Pradesh, with planned installed capacities of 750MW and 250MW respectively.
Other Indian states such as Odisha, Chhattisgarh and Haryana are also included in the list of the potential solar sites to be developed under the project.
India Ministry of Finance Department of Economic Affairs joint secretary Sameer Khare said: “The Government of India is committed to set-up an enabling environment for solar technology penetration in the country.
“This project will help establish large-scale solar parks and support the government’s plan to install 100GW of solarpower out of a total renewable-energy target of 175GW by 2022.
“The use of this clean and green technology will also help contribute to global efforts to meet the challenges of climate change.”
The new World Bank funding will be used by IREDA to develop various common infrastructure including power pooling substations, intra-park transmission infrastructure as well as access to roads, water supply and drainage, among others.
Currently, India has roughly 331GW of installed power generating capacity, but around 300 million people are not yet connected to the national electrical grid.