MUMBAI (Reuters) - Asian Development Bank (ADB) said on Monday it is part-funding a project with India's Reliance Power to build what it said would be India's largest solar photovoltaic power plant.
The plant marks Reliance Power's first foray into solar energy and is part of its strategy to expand its renewable energy portfolio.
ADB is providing a long-term loan of up to $48 million to finance the 40 megawatt solar power project located in Jaisalmer district in the western state of Rajasthan.
Reliance group firm Reliance Infrastructure will buy the electricity under a long term power purchase agreement. The power will be distributed to households in Mumbai, the country's financial capital.
The project, expected to cost about $147 million, is scheduled to be completed by the second quarter of 2012, the statement posted on ADB's site, said.
The Export Import Bank of the United States is also providing funding for the project.
ADB said it aims to help develop, finance and commission 3,000 MW of solar power generation capacity in its developing member countries by mid 2013.
(Reporting by Aniruddha Basu; Editing by Subhadip Sircar)