By Faridat Salifu
SAEL Industries Limited has sealed a significant deal with the Asian Development Bank (ADB) for the establishment of a 400-megawatt greenfield solar power plant project in Gujarat, India.
The financing agreement, announced on January 24, 2024, encompasses a $147 million loan from ADB and an additional parallel loan of up to $73.48 million underwritten by Tata Capital.
Reports say under the leadership of ADB, the financing package was intricately structured with a strategic focus on mobilizing domestic private capital.
SAEL Solar P4 Private Limited, a subsidiary of ADB, will spearhead the construction and operation of the solar power plant within the Khavda Ultra Mega Solar Park in Gujarat, India.
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The generated electricity from the solar plant will be supplied to Gujarat Urja Vikas Nigam Limited, the state-owned power distribution company, through a 25-year purchase agreement.
Anticipated to produce an average of 953 gigawatt-hours of clean energy annually, the plant it was further gathered is poised to mitigate approximately 783,855 tons of carbon dioxide emissions every year.
This partnership marks another milestone for SAEL and ADB, previously collaborating on a successful biomass power generation project utilizing agricultural residue.
Authorities say SAEL Industries Limited, established in 1999, is dedicated to spearheading renewable energy initiatives and has garnered a formidable presence within India’s renewable energy sector.
As a member of SAEL group of companies, the organization boasts diversified business interests in renewable energy generation, warehousing, and agricultural processing.
The partnership between SAEL and ADB represents a significant step in advancing India’s renewable energy sector, promoting sustainable development, and encouraging the transition to green energy.
