New Delhi: Asian Development Bank (ADB) on Thursday said it has arranged Rs 1,460 crore loan for ENGIE group for constructing a 400-megawatt solar photovoltaic power plant in Surendranagar, Gujarat. ADB was the mandated lead arranger for the entire loan totalling Rs 14.6 billion (approximately USD 175.9 million) with ADB and Asian Infrastructure Investment Bank both providing Rs 7.3 billion, the Manila-based multilateral funding agency said in a statement.

The project will support the Government of India’s target of achieving at least 500 gigawatts of non-fossil fuel energy capacity by 2030.

“The private sector’s engagement in the fight against climate change is pivotal for achieving a clean energy transition in Asia and the Pacific,” said ADB Director General for Private Sector Operations Suzanne Gaboury.

This project exemplifies how ADB, as the region’s climate bank, supports the private sector in developing renewable energy projects through long-term local currency financing typically unavailable in local capital markets, the statement said.

This is the second project that ADB has financed for the ENGIE group in India, following the financing of the group’s flagship project in the country in 2020, and exemplifies our focus on mobilizing long-term financing from partner organizations.

The solar panels will be constructed using locally produced bifacial photovoltaic power modules, thereby diversifying the solar module supply chain and supporting India-based manufacturers, it said. The plant will generate an average of 805 gigawatt-hours annually over the next 25 years, avoiding nearly 662,441 tonnes of carbon dioxide emissions per year, it said.