NEW DELHI, INDIA (24 January 2024) — The Asian Development Bank (ADB) and SAEL Industries Limited, through its subsidiary SAEL Solar P4 Private Limited, have signed a loan of up to 12.23 billion Indian rupees (about $147 million equivalent) for the development of a 400-megawatt (MW) greenfield solar power plant in Gujarat, India, to support the country’s ongoing transition toward clean energy and low-carbon growth.
The financing package comprises of 12.23 billion Indian rupees from ADB and a parallel loan of up to 6.11 billion Indian rupees underwritten by Tata Capital. ADB led the structuring of the financing package as well as the mobilization of domestic private capital.
“The private sector must play a pivotal role in the transition from fossil fuels to renewable energy generation, particularly in Asia and the Pacific region, which contributes over half of global greenhouse gas emissions. As the region’s climate bank, ADB provides long-term local currency financing to stimulate private sector investment in clean energy,” said ADB Director General for Private Sector Operations Suzanne Gaboury. “ADB’s partnership with SAEL supports the Government of India’s objective of achieving 500 gigawatts of renewable energy generation capacity by 2030.”
SAEL Solar P4 Private Limited will build and operate the solar powerplant, situated within the Khavda Ultra Mega Solar Park in Gujarat, India. The electricity generated by the solar plant will be supplied to Gujarat Urja Vikas Nigam Limited, the state-owned power distribution company, through a 25-year purchase agreement. The plant is anticipated to produce an average of 953 gigawatt-hours of clean energy annually, helping to avoid approximately 783,855 tons of carbon dioxide emissions annually. SAEL and ADB have previously partnered in a biomass power generation project that uses agricultural residue.
“We are delighted to announce our partnership with ADB, a significant milestone in our commitment to combat climate change and bolster environmental sustainability. This collaboration marks a pivotal moment as we join forces to construct solar as well as biomass power plants. Our association with ADB is of paramount importance, emphasizing our dedication to promoting environmental sustainability and contributing to a cleaner, greener future for all.” said SAEL Industries Limited Chairman and Managing Director Jasbir Singh.
SAEL Industries Limited is a renewable energy company with a strong focus on the creation of green assets to contribute to the transition to green energy, with biomass and solar power projects in various states in India. It is a member of the SAEL group of companies which was founded in 1999 and has diversified business interests in renewable energy generation, warehousing, and agricultural processing.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.
