The Solar Energy Corporation of India Ltd. has issued a Request for Proposal (RFP) to scheduled commercial banks and financial institutions to raise a term loan of ₹2,720 crore. This funding will be used for developing a 700 MW solar photovoltaic (PV) power plant at Radhanesda in Gujarat, marking a major step in expanding its own power generation portfolio.
SECI, a Navratna public sector enterprise under the Ministry of New and Renewable Energy, has played a key role in implementing renewable energy projects across the country. By the end of 2025, the agency had already awarded more than 76.5 GW of renewable energy capacity. It also holds a strong ‘AAA’ credit rating from agencies like ICRA and CARE Ratings, showing its financial strength and credibility.
The Radhanesda solar project is part of a larger 1,200 MW capacity allocated to SECI under the Central Public Sector Undertaking (CPSU) Scheme Phase-II. While the company is also working on projects in Ramagiri in Andhra Pradesh and Dhar in Madhya Pradesh, the Gujarat project is its biggest upcoming development. The plant is expected to start operations by February 6, 2028. The electricity generated will be supplied to Gujarat Urja Vikas Nigam Limited at a fixed tariff of ₹2.45 per unit.
Progress on the project is already underway. Around 1,105 hectares of land have been allocated by the Gujarat government. At the same time, SECI has started technical preparations, including tenders for solar modules and power transformers. The total cost of the project is estimated at ₹3,847 crore. After adjusting for government subsidies and Viability Gap Funding, the net cost comes down to about ₹3,393.96 crore.
To finance this, SECI plans to follow a debt-equity ratio of 80:20. The equity portion will be funded through its internal resources, while the debt will come from the proposed ₹2,720 crore term loan. The company has set clear terms for lenders. The loan will have a total tenure of 18 years, including a moratorium period covering the 19-month construction phase and one additional year. During this period, only interest payments will be made. After that, the principal will be repaid in half-yearly installments, while interest will continue to be paid monthly.
SECI has also asked for competitive interest rates and has clearly stated that it does not want to pay commitment, upfront, processing, or legal fees. The loan will be secured through a first pari-passu charge on the project’s fixed assets.
Banks interested in funding the project must submit their proposals in sealed envelopes to SECI’s New Delhi office by May 14, 2026. Each participating bank must offer at least ₹500 crore. This move shows SECI’s shift from being mainly an intermediary agency to becoming a large renewable energy project owner in India.
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