Tata Power secures funds for its solar project

Tata Power, India's largest private power company, on Tuesday tied up the entire debt requirement through consortium of domestic lenders for its 25 Mw solar power project in Gujarat. The consortium includes lenders such as State Bank of India and Export Import Bank of India.

Tata Power, through its subsidiary-Tata Power Renewable Energy Limited, is developing a 25 Mw solar photovoltaic (PV) power project at Mithapur in Gujarat under the State’s Solar Power Policy 2009.

"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 Limited acting as the sole financial advisor and arranger. The signing of financing agreements was completed on December 2, 2011. The company completed pre-disbursement conditions under the financing agreements for availing interim disbursement and received the first loan disbursement on December 8, 2011," the company said in a statement.

This project, involving an investment of approximately Rs 365 crores, is being funded through a debt equity mix of 70:30. The project financing comprises of equity of Rs 110 crores and Rupee Term Loans of Rs 255 crores.

Spread over 100 acres of land, the solar plant will be located along the coast of Gujarat. The project is based on crystalline silicon photo-voltaic technology.

The company has signed a power purchase agreement (PPA) for the project with Gujarat Urja Vikas Nigam Limited (GUVNL).

This plant is likely to be one of the largest of its kind in the country and will be ready to inject power into the system by end-December 2011.