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KfW signs €250m loan for 125MW Mahagenco Solar PV Plant in Maharashtra

Panchabuta in early May had talked about the Maharashtra government clearing the proposal by the state power generation company, MAHAGENCO, to set up a 150 Mw solar energy project in Dhule district.

Since, Lanco Solar, a fully owned subsidiary of Lanco Infratech Limited, today announced “it, in consortium with Juwi Renewable India Ltd, has received LOA”Letter of Award from Maharashtra State Power Generation Co Ltd (Mahagenco) for building of a 75MW Crystalline technology based photovoltaic solar power project in Dhule district in the state of Maharashtra.

According to reports, German development fund KfW Entwicklungsbank has signed a reduced-interest loan of €250m for a 125MW solar plant in the state of Maharashtra in west India. The total cost of the development is estimated at €370m with project manager state-run Mahagenco expected to contribute the rest of the necessary funding. The project is expected to be connected to the grid in March next year and has been designed so an additional 25MW can be added.

Norbert Kloppenburg, executive board member of KfW, said, ‘India will have to play a key role in global climate protection because of its fast, energy-intensive growth. By financing this strategic investment in renewable energies KfW Entwicklungsbank is making a significant contribution to combating climate change and implementing the energy turnaround in India.’

One comment

  1. It’s a good development – but question is that would other developers be able to access such sources of financing and be able to lead to financial closure?

    Unless that happens, the reduction in costs may not happen as targeted for the future stages of solar PV deployment in the country.

    – Kedar

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