Avaada Energy, the renewable energy division of Avaada Group, has secured financing of ₹3.15 billion (~$37.8 million) from Aseem Infrastructure Finance (AIFL) for a solar power project.

The financing is for Avaada Energy’s solar project, which is being developed under a long-term captive power purchase agreement with the Karnataka Cooperative Milk Producers’ Federation (KMF).

The project is located in the Kalaburagi district of Karnataka.

The company said this 21-year project loan facility from AIFL underscores Avaada’s derisked project development strategy and robust project financing capability.

Vineet Mittal, Chairman of Avaada Group, said, “This successful financial closure of ₹3.15 billion demonstrates our long-standing relationship with Aseem Infrastructure Finance. This renewed partnership highlights the trust and confidence of leading financial institutions like Aseem have in Avaada’s capabilities.”

Mittal said the funding will facilitate the development of a captive project for a cooperative entity, illustrating the pervasive impact of energy transition across the Indian economy.

The project is expected to be completed during the third quarter of the financial year 2024-25.

“This initiative aligns with Avaada Group’s broader sustainability strategy and commitment, playing a pivotal role in driving national self-reliance and a greener future,” Mittal added.

Recently, the company secured green financing of ₹11.9 billion (~$143 million) from public sector lender State Bank of India.

Avaada Energy also closed a ₹44.71 billion (~$535.3 million) refinancing deal with the National Bank for Financing Infrastructure and Development for four inter-state transmission system-connected solar projects with a combined capacity of 1.7 GW in Rajasthan.

Last April, Avaada Group raised $1.07 billion from Brookfield Renewable to support its green hydrogen and green ammonia projects in India. The funding is part of the company’s ongoing plan to raise $1.3 billion.

Avaada Energy was among the winners of NTPC’s auction to set up 1,500 MW of ISTS-connected solar power projects (Tranche II) across India. Avaada was awarded 500 MW out of the 750 MW quoted capacity at a tariff of ₹2.6 (~$0.0313)/kWh.