Tata Power secures funding for 25-MW solar project in Gujarat

Tata Power today said it has tied up funds for its 25-MW solar project in Gujarat, which is to see an investment of about Rs 365 crore.

The solar photovoltaic (PV) power project at Mithapur will be funded through a debt equity mix of 70:30. The plant is expected to start power generation by end-December.

"The project financing comprises equity of Rs 110 crore and rupee term loans of Rs 255 crore," Tata Power said in a statement.

The Mithapur project is being developed by Tata Power Renewable Energy Ltd, a subsidiary of Tata Power.

"Tata Power Renewable Energy Limited has successfully tied up the entire debt requirement through a consortium of domestic lenders, namely State Bank of India and Export Import Bank of India with SBI Capital Markets Ltd acting as the sole financial advisor and arranger," the statement said.

According to the company, the first loan disbursement was received on December 8.

"The signing of the financing agreements is a significant milestone for the project... We look forward to participating in many such initiatives in solar power," Tata Power Managing Director Anil Sardana said.

Tata Power has inked a Power Purchase Agreement (PPA) for the project with Gujarat Urja Vikas Nigam Ltd.