IFC to support development of a 600MW solar park in Uttar Pradesh

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The International Finance Corporation (IFC) private-sector arm of the World Bank will support the development of a 600MW solar park in Uttar Pradesh on a public-private partnership basis.

The solar site is one of two 600MW solar parks planned in Uttar Pradesh to be developed by central government-owned hydropower business THDC India Ltd in a joint venture with the Uttar Pradesh New & Renewable Energy Development Agency. Under the terms of the joint venture, THDC India will own 74% of the Tusco Ltd joint company, with the state renewables body holding the balance.

THDC India and the state renewables agency have been tasked with developing up to 2GW of solar park capacity, including the 600MW solar-ready site to be prepared in the Jhansi district of the Garotha tehsil of Uttar Pradesh which the IFC will try to attract private investment for.

The 2GW of solar parks to be set up by Tusco will be installed under the Ultra Mega Renewable Energy Power Park scheme run by the Ministry of New and Renewable Energy.

Tusco will get federal government funding of INR20 lakh per megawatt of solar generation capacity which can be hosted at the site or 30% of the solar park project development cost, whichever is lower. The cash will be used to provide park infrastructure and the joint venture will also meet electricity transmission costs to the central or state utility.

The park will encompass 242 acres of government land and 2,851 acres leased from farmers in the villages of Sujanpura, Jaswanpura, Jalalpura, Pura, and Kharora, next to the Dhasan river in Garotha.

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