Madhya Pradesh Urja Vika Nigam Limited (MPUVN) and the Solar Energy Corporation of India have created a joint venture company called Rewa Ultra-Mega Solar Power to implement the project.
IFC said that it would extend its global expertise to structure and implement the transaction to help attract private investments of about $750m.
The solar project will developed on a area of more than 1300 hectares to help the state meet its renewable purchase obligations, which mandates that each state generate a certain percentage of its electricity through renewable sources.
This project is being backed by the Indian Ministry of New and Renewable Energy, under its solar parks development scheme.
Government of Madhya Pradesh Minister of Energy, Mines, and Minerals Rajendra Shukla said: "Successful implementation of the Rewa Ultra-Mega Power project will be a key milestone for Madhya Pradesh’s outstanding efforts and leadership in renewable energy and the central government’s remarkable vision on solar power. The project will provide competitively-priced renewable power to state and central entities.
"IFC’s global expertise in PPPs, leadership in renewable energy, and convening power with investors, will help us implement this unique project."
Upon completion, the Rewa solar power project would be the largest single-site solar power project in the world.
As of 30 June 2015, IFC invested over $5bn in India. In FY15, IFC committed $1.4 billion in new investments.
In addition to strengthening local capital markets in India, IFC is focusing on boosting financing in infrastructure and logistics, promoting financial inclusion, helping create conditions to attract increased private capital, and helping structure public-private partnerships.
