By Sarosh Bana, edited by Kari Williamson

Straddling 100 acres of land, the solar PV plant will consist of crystalline silicon solar PV modules and is being built under Gujarat state’s Solar Power Policy 2009.

Tata Power's subsidiary, Tata Power Renewable Energy Ltd (TPREL), has signed a power purchase agreement (PPA) for the project with Gujarat Urja Vikas Nigam Ltd (Gujarat Electricity Development Corporation).

Tata Power Managing Director, Anil Sardana, says the solar PV project has concluded all its financing agreements. TPREL has tied up the entire debt requirement through a consortium of domestic lenders comprising State Bank of India and Export Import Bank of India, with SBI Capital Markets Ltd acting as the sole financial advisor and arranger. The company also completed pre-disbursement conditions under the financing agreements for availing interim disbursement and received the first loan disbursement in December 2011.

The solar PV project of approximately Rs365 crore is being funded through a debt equity mix of 70:30. The project financing comprises of equity of Rs110 crore and Rupee Term Loans of Rs255 crore. The solar PV plant could become one of the largest of its kind in Inda, and will shortly be ready to feed power into the grid.

Tata Power is currently also developing what could be India's first 4 GW Ultra Mega Power Project (UMPP) at Mundra, in Gujarat, based on technology from South Korea’s Doosan Heavy Industries and Construction.