Azure Power has secured a US$16-million long-term loan
To finance the construction of its 5MW solar system in Rajasthan, India, Azure Power has secured a US$16-million long-term loan from the Export-Import Bank of the United States. The project is not only one of the first to receive financial backing from an international financing institution, but also one of the first to be developed under India’s Jawaharlal Nehru National Solar Mission.
During the 2011 fiscal calendar, Ex-Im Bank has now put US$75 million of its financial muscle behind four projects in India. For a project pipeline totaling 315MW, Ex-Im Bank, has set aside a further US$500 million. The three other projects are the Dalmia and Punj Lloyd Solar Projects in Rajasthan, and the ACME Solar Technology Project in Gujarat. Fred Hochberg, Ex-Im Bank chairman and president said India is creating incentives to encourage solar companies to develop this market and has set ambitious goals to increase solar energy production. He added to enable a robust solar power sector in India, Ex-Im Bank is pleased to partner with Azure Power.
To make sure that they have the competitive financing they need to participate in these important initiatives, Ex-Im Bank is working with US exporters. Based on the cash flows generated by the sale of electricity to NTPC Vidyut Vyapar Nigam (NVVN) is repayment of the 16-and-a-half-year. NTPC Vidyut Vyapar Nigam (NVVN) is the Indian Government has provided special power-price incentives.