SECI Secures INR 10 Billion Loan for 300 MW Solar Project, Boosting India’s Renewable Energy Agenda

In a significant development, the Solar Energy Corporation of India (SECI) has successfully secured a substantial term loan of Rs 10 billion for the expansion of a 300 MW solar project. This financial boost marks a crucial step towards advancing India’s renewable energy capacity and underscores SECI’s commitment to sustainable and clean power sources.

The funding, obtained through a request for proposal (RFP) inviting proposals from scheduled commercial banks and financial institutions, is earmarked for the development, construction, and integration of additional solar infrastructure. The 300 MW expansion, part of the 1.2 GW capacity awarded by the Indian Renewable Energy Development Energy Limited (IREDA) to SECI, is proposed to be developed in Ramagiri and Muthuvakuntla villages of Sri Sathyasai district.

SECI’s strategic efforts to accelerate the growth of solar power projects align with India’s national agenda of achieving ambitious renewable energy targets. The term loan, sought for a 20-year period at a competitive interest rate, is expected to expedite the completion timeline of the solar project, ensuring its timely integration into the power grid.

The project has garnered in-principle approval from the SECI board and the Government of India, with the power generated contracted to be sold to Madhya Pradesh Power Management Company Limited (MPPMCL) for INR 2.57/kWh. With a projected commercial operations commencement by June 30, 2025, SECI estimates the total project cost at INR 14.2 billion, intending to fund it with a 70:30 debt-equity ratio, potentially going up to 75:25. Equity will be met through internal accruals and Viability Gap Funding (VGF) from IREDA, while debt will be arranged via a rupee term loan from banks and financial institutions. This development signifies a noteworthy step towards a cleaner and greener energy future for India.