Acme receives approval for $100 million loan from ADB

Mumbai: Power producer Acme Group on Thursday said it had received final approval for a $100 million loan from the Asian Development Bank (ADB) for its solar power projects.

The loan will be distributed in multiple tranches, the firm said. The first tranche of $50 million will be utilized in developing a 100 MW project in Rajasthan and the remaining amount used for upcoming projects.

The company had won the Rajasthan solar power project in second round of bidding under the Jawaharlal Nehru National Solar Mission (JNNSM) in February. The project is expected to be commissioned by April 2015.

"This expression of interest depicts the potential of Solar Power in the country which has been facilitated by sound policy framework and focus of the current government on the renewable sector. The impetus provided by the financial institutions will help the sector to tide over the challenges and increase its share from 1% to 3% in the overall energy mix," said Manoj Kumar Upadhyay, founder and chairman, Acme Group.

Last month Acme Group also sourced an investment from the International Finance Corp. (IFC), part of the World Bank group, in the form of a senior loan of up to $34 million (Rs.202 crores) for the Rajasthan project.

The firm is also seeking loan syndication of up to $66 million (Rs.388 crore) from IFC for the project. The project is estimated to cost $136 million (Rs.808 crore), according to IFC disclosures posted on the website.

The company has a portfolio of 197.5 MW in the states of Gujarat, Madhya Pradesh, Rajasthan, Odisha and Chhattisgarh. It aims to generate 1,000 MW by the year 2017.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.