The Asian Development Bank has approved a US$100 million loan to the state of Gujarat in western India to accelerate the rollout of one the world's largest solar power facilities.

Gujarat Chief Minister Narendra Modi, with flowers, at the foundation stone ceremony in Charanka, inspects a model of the project. December 30, 2011. [narendramodi.in]?

The funding for the Gujarat Solar Power Transmission Project will support the 500 megawatt Patan Solar Park, Asia's largest such project, located at Charanka village about 60 km (40 miles) from India's border with Pakistan.

The funds will be used to build a substation, smart grid transmission lines and other equipment to collect and distribute solar power from this remote arid area, which can expect sunshine 330 days a year.

Once transmission lines and substation are installed, private companies will find it more cost-effect to set up large-scale solar energy generating plants at Charanka, bank officials say.

"By putting in reliable power transmission facilities in the solar park, Asian Development Bank will help draw in private sector developers, while providing a model which can be replicated to scale up solar power in a significant manner in India," said Naoki Sakai, senior climate change specialist with the bank.

The parks will provide developers with the necessary permits and services to fast track the rollout of solar generating stations.

They will also help the government of India realize its goal of building solar facilities with total generating capacity of 20,000 megawatts by 2022.