Indian Renewable Energy Development Agency (IREDA) on Thursday said that it has inked a loan pact with SJVN Green Energy for financing Rs 4,444.71 crore for latter's 1,000MW solar power project at Bikaner in Rajasthan.

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"Indian Renewable Energy Development Agency Ltd signed a historic loan agreement for Rs 4,444.71 crore with SJVN Green Energy (SGEL), a subsidiary of SJVN Ltd, today for a 1,000 MW solar power project at Bikaner, Rajasthan," an IREDA statement said.

Pradipta Kumar Roy, DGM (IREDA), and S L Sharma, CEO (SGEL), signed the loan agreement in the presence of Pradip Kumar Das, CMD, IREDA, and Nand Lal Sharma, CMD, SJVN, at the corporate office of IREDA.

Das said in the statement, "We are pleased to sanction IREDA's highest loan amount to SGEL for development of 1,000 MW solar project. We will be able to support government of India to achieve its targets of 50 per cent share of energy from non-fossil fuels by 2030 through this kind of cooperation. 

Also, this partnership will encourage green investment and generate both direct and indirect employment opportunities."

The IREDA funded project will connect to 400/220 KV substation Bikaner-II (near Bikaner). SJVN has bagged the project through the tender floated by IREDA under the CPSU Phase-II (Tranche III) Scheme for development of grid-connected solar PV power project through competitive bidding process based on VGF (viability gap funding) support.

In a separate statement, Nand Lal Sharma, Chairman & Managing Director, SJVN, informed that the financial closure for India's largest 1,000 MW solar power project at Bikaner, Rajasthan has been successfully achieved.

"The project is being financed at a debt equity ratio of 80:20. Government of India will be funding the viability gap of Rs 447.20 crore. The entire debt of Rs 4,444.71 crore has been tied up with IREDA," he said.

Engineering, Procurement & Construction (EPC) contract of this project has been awarded to Tata Power Solar Systems Ltd, he said.