Reliance Power raises $302 mn foreign debt to fund its Rajasthan Plant

Reliance Power has raised external commercial borrowings (ECB) worth $302 million (around Rs 1,588 crore) to fund its 100-megawatt solar power project in Rajasthan, executives close to the development told ET.

The Anil Dhirubhai Ambani Group company recently signed a pact with Asian Development Bank, Dutch development bank FMO, US-EXIM and Axis Bank to raise the foreign debt.

Reliance Power, through its subsidiary Rajasthan Sun Technique, is setting up the solar power plant at a total cost of Rs 2,250 crore, which would be funded through 75% debt and 25% equity.

The project would be based on the concentrated solar power technology, which uses mirrors and lenses to concentrate sunlight and converts it to heat, which is then converted to electricity.

Reliance Power has a 40-MW solar power project that is in operation and runs on the photovoltaic technology which converts sunlight directly into electricity using photovoltaic cells.

The 100-MW Rajasthan unit is scheduled to be commissioned in May 2013.