The Asian Development Bank (ADB) has signed off on a $152 million loan for renewable development in the Indian state of Rajasthan.
On September 12, the ADB approved a package of three loans for its Rajasthan Renewable Energy Transmission Project.
Under the terms of the 40-year agreement, the ADB will lend the state government of Rajasthan, and its power utility the Rajasthan Rajya Vidyut Prasaran Nigam Ltd (RRVPNL), $62 million from its capital reserves to invest in renewable energy transmission infrastructure in a state which is aiming to generate 8 GW from solar and wind by 2018.
On top of the ADB loan, the global Clean Technology Fund, administered by the ADB in Asia, will lend a further $88 million to the project as well as a $2 million loan for capacity development.
The deal is potentially good news for solar developers in the state still awaiting payment of solar incentives owed them by the previous government as Rajasthan can use up to 20% of the loan to pay expenses accrued in the 12 months prior to the loan being signed off.
As part of the agreement, the state government and the utility have agreed to finance the project to the tune of $127 million.