- The objective is to improve MSMEs’ access to green energy & save on their energy costs
- MSMEs can avail of the dual services of Solar EPC by TPSSL, financed through a term loan facility by UBI
Tata Power Solar Systems Limited (TPSSL), a wholly owned subsidiary of Tata Power Renewable Energy Limited (TPREL) has partnered with Union Bank of India (UBI), one of India’s oldest and largest public sector banks, to help MSME (Micro, Small and Medium Enterprises) sector switch to solar solutions. The collaboration aims to promote green energy transition in these enterprises and save on their cost of electricity. The official release noted that the alliance will support the ‘Make in India’ initiative by facilitating reliable green power to industries in wake of grid exigencies.
The notification stated that the association will be implemented under UBI’s solar scheme called ‘Union Solar’, which was launched on a pan-India level to relieve the MSMEs from the stress of higher power costs and grid exigencies. It further noted that MSMEs can avail of the dual services of Solar EPC by TPSSL, financed through a term loan facility by UBI, wherein industries can avail up to ₹8 crores of the loan amount at the best possible interest rates (exclusive for Tata Power customers) with nil or minimum collateral. The scheme, it said, also requires a minimum down payment of only 20% of project cost thus making it very attractive for the MSME.
Mr Shivram Bikkina, Chief Rooftop, TPREL, commented, “In the last few years, Indian MSME industry is experiencing a behavioural shift towards green energy solutions. Being a pioneer in the renewable sector, TPREL is happy to be part and leading this transition. We are committed to make TPREL a one-stop solution for the solar rooftop industry, where customers can resolve all their queries, including financing concerns. By joining hands with Union Bank of India, we look forward to making this collaboration a benchmark for the industry to emulate and take India’s green energy success journey to greater heights.”
Chief General Manager of Union Bank of India, Mr C. M. Minocha stated: “We believe, in Tata Power, we have found a natural ally in our efforts to help small businesses improve their access to green energy through the solar solution that is reliable, affordable and self-paying in the long run. Our Union Solar scheme is specifically designed to address the needs of the MSME sector. By addressing the financing challenge, we expect to see an impressive growth in the use of solar power in the MSME sector that will also make them more competitive in the domestic and international markets.”
The two companies believe that solar solutions will help bring a turnaround in the MSME sector by reducing their grid dependency and making them independent power producers with greater control over their productivity and output.
Touted as India’s largest specialized EPC player, 1989-born TPSSL was originally formed as a joint venture between Tata Power and British Petroleum Solar (BP Solar). The Bengaluru-headquartered TPSSL now operates independently as a wholly-owned subsidiary of TPREL, which itself is a subsidiary of The Tata Power Company Ltd. TPSSL is considered to be one of the pioneering solar manufacturers in the world. It is noteworthy that the company recently signed an MoU with the Tamil Nadu government to set up a 4 GW solar cell and 4 GW solar module manufacturing plant in the Tirunelveli District.