Avaada Energy, the renewable energy arm of the Avaada Group, closed a ₹5.97 billion (~$71 million) refinancing deal with NIIF Infrastructure Finance (NIIF IFL) for its commercial and industrial solar projects in Karnataka and Maharashtra.

The solar projects supply electricity to various companies, including Bharati Airtel, Motherson, Bharat Forge, STT, Nxtra Data, and Lumax.

Avaada said the refinancing from NIIF IFL was on significantly improved commercial terms, facilitating the prepayment of the existing loan facility. It also reduced finance costs while releasing capital for future deployment.

The company has an operational capacity of ~4 GW and aims to have an installed base of 11 GW by 2026 and 30 GW by 2030. The company also has a 1.25 GW solar power project at a single site in Bikaner, Rajasthan. Most projects are in Rajasthan, with 1,836 MW commissioned and 3,836 MW under implementation.

The company signed a memorandum of understanding with the Rajasthan government to invest ₹1 trillion (~$11.89 billion) in the state. The planned investment will fund major green energy initiatives, including a 1.2 GW pumped hydro storage project, a 1 MTPA green ammonia project, a 1 GW wind power project, and a 10 GW solar power project.

Recently, Avaada Energy was one of four companies to win Maharashtra State Electricity Distribution Company’s auction to supply 1,650 MW of wind-solar hybrid power on a long-term basis from grid-connected intrastate projects with a greenshoe option of up to 1,650 MW. Avaada Energy was awarded 500 MW (13 MW plus 487 MW greenshoe) at ₹3.60 (~$0.0428)/kWh.

In May, the company secured financing of ₹3.15 billion (~$37.8 million) from Aseem Infrastructure Finance for a solar power project. The funding was expected to be utilized for Avaada Energy’s solar project under a long-term captive power purchase agreement with the Karnataka Cooperative Milk Producers’ Federation.