Home » Finance » Azure Power receives $70.4 mn long-term financing from US Exim Bank

Azure Power receives $70.4 mn long-term financing from US Exim Bank

According to reports, Azure Power announced a long-term financing of $70.35 million from Export Import Bank of United States, to be utilised towards its solar powered plant in Nagaur, Rajasthan. The plant is an expansion of the company’s existing 5 megawatt Nagaur photo-voltaic facility, to 40 megawatt, making it the largest  solar power plant to be developed at a single location under the National Solar Mission, according to a press statement released by the company.

“With this project we are committed to working towards meeting the grid parity objective of the National Solar Mission in India,” Inderpreet Wadhwa, chief executive, Azure Power, said.

The construction of the plant has commenced and it is expected to be operational by February 2013. Once fully operational, the solar plant is expected to reduce carbon emissions of up to 66,000 metric tonnes per year, or in other words, the equivalent of removing about 12,000 cars off Indian roads per year, according to a statement by the company.

The solar photovoltaic project in Rajasthan is the first project under JNNSM Phase-1 Batch-II to tie-up financing, and the company is on track to complete investment of Rs 1,000 crore in the Indian solar sector by March 2013.

In March earlier in the year, Azure Power received a grant of $476,670 from the United States Trade and Development Agency (USTDA) to assess the development and accelerate adoption of solar power in rural India.

The grant was awarded to fund a feasibility study on two 500 KW micro-grid solar photovoltaic power generation pilot projects in the states of Gujarat and Chhattisgarh.

Azure Power aims to set up over 100 micro-grid solar systems, with each system covering an average of 2 to 3 acres of rural land, which would generate sufficient power to electrify approximately 800 to 1,000 villages with little or no connectivity, to existing electrical grids.

Over the last two years, an increasing number of global investors have evinced greater interest in India’s clean-tech sector, because of the country’s rising energy demands and the gap between demand and sluggish supply.

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