- The project intends to secure funding through a 70:30 debt-equity ratio, which may potentially increase to 75:25
- The agenda is developing, constructing, and integrating additional solar infrastructure
The Solar Energy Corporation of India (SECI) has a substantial term loan of Rs 10 billion to expand a 300 MW solar project. This step has been taken to boost India’s renewable energy capacity and underscores SECI’s commitment to sustainable and clean power sources.
The fund has been acquired by a request for proposal (RFP) inviting proposals from scheduled commercial banks and financial institutions. The agenda is developing, constructing, and integrating 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.
The project has received preliminary approval from the SECI board and the Government of India. Under the agreement, the generated power will be sold to Madhya Pradesh Power Management Company Limited (MPPMCL) at a rate of INR 2.57/kWh.
SECI anticipates commencing commercial operations by June 30, 2025, and estimates the total project cost to be INR 14.2 billion. The project intends to secure funding through a 70:30 debt-equity ratio, which may potentially increase to 75:25. Equity will be sourced from internal accruals and Viability Gap Funding (VGF) from IREDA. At the same time, the necessary debt financing will be arranged through a rupee-term loan from banks and financial institutions. This development marks a significant stride toward India’s cleaner and more environmentally sustainable energy future.