Coal India (CIL) has invited proposals from financial institutions for a loan of  ₹12.17 billion (~$147.05 million) to set up 300 MW ground-mounted solar power project at Gujarat Industries Power Company’s (GIPCL) solar park in Khavda, Gujarat.

Bids must be submitted by February 19, 2025. Bids will be opened on February 20.

The project’s estimated cost is ₹15.2 billion (~$176 million), and the debt-equity ratio is 80:20.

The loan must be approved within 45 days.

The loan’s tenor must be 11 years, including one year of project construction and a 10-year repayment period. The debt must be disbursed progressively in a 80:20 ratio.

CIL will repay the loan in 40 equal quarterly installments.

Bidders must be scheduled commercial banks, non-bank financing companies, or regulated financial institutions. Consortiums of commercial banks, NBFCs, or regulated financial institutions cannot participate.

CIL can draw a lesser amount than the loan tied-up amount based on the project requirements. It can draw partially or entirely, or even cancel the loan agreement without drawal after providing a 30-day intimation.

The credit can be secured against non-current assets, excluding the project land.

In 2023, CIL participated in Gujarat Urja Vikas Nigam’s Phase-XXI tender for procuring power from 600 MW grid-connected solar power projects to be set up in GIPCL renewable park at Khavda (GIPCL stage 1).

CIL was awarded 300 MW at the tariff of ₹2.55 (~$0.029)/kWh to supply the power for 25 years. It entered an “implementation and support” and “land lease” agreement with GIPCL, under which the latter received partial upfront development charges and corpus funds.

The project aims to deliver energy to the 220/400/765 kV substation of the central transmission utility (KPS 2) at the Khavda central transmission utility periphery through the 33/400 kV internal pooling substation of the solar park.

The project’s expected commissioning date is November 2025.

Bidders must have a net worth of ₹5 billion (~$57.89 million).

CIL awarded Surat-based renewable energy project developer KPI Green Energy the auction to set up the project.