The Indian Renewable Energy Development Agency (IREDA) has sanctioned a ₹44.45 billion (~$537.14 million) loan to SJVN Green Energy, a subsidiary of SJVN, to develop a 1 GW solar project in Bikaner, Rajasthan.

SJVN had bagged the project tendered by IREDA under the CPSU Phase-II (Tranche-III) program under viability gap funding to develop a grid-connected solar project.

The total tender for 5 GW capacity was oversubscribed by 1,960 MW.

The company had won the capacity of 1,000 MW by quoting ₹4.472 million (~$54,040) / MW as a viability gap fund.

The project is to be commissioned within 36 months from the letter of award and will connect to the 400/200 kV Bikaner-II substation.

In a National Stock Exchange filing, SJVN said that the project is being financed at a debt/equity ratio of 80:20. The Central government will fund the viability gap of ₹4.472 billion ($54.03 million), while the entire debt of ₹44.45 billion (~$545.02 million) has been tied up with IREDA including bridge loan of ₹2.23 billion ($26.9 million) against the viability gap funding.

The public sector enterprise further said that Tata Power Solar Systems was awarded the project’s engineering, procurement, and construction contract.

“The total cost of the project is ₹57.23 billion ($691.3 million), and it is scheduled to be commissioned on January 3, 2024. Once commissioned, it will generate 2,455 million units in its first year of operation and 56,838 million units during the entire life of the project,” the company added.

Pradip Kumar Das, the Chief Managing Director at IREDA, said, “We are pleased to sanction IREDA’s highest loan amount to SJVN Green Energy for the development of a 1,000 MW Solar project. We will be able to support the government of India to achieve its target of a 50% share of energy from non-fossil fuels by 2030 through this kind of cooperation. Also, this partnership will encourage green investment and generate both direct and indirect employment opportunities.”

The partnership between IREDA and SJVN is also expected to encourage green investment and generate both direct and indirect employment opportunities.

IREDA had approved loans of ₹112.26 billion (~$1.36 billion) during the second quarter of the financial year 2022-23, up 89% against ₹59.25 billion (~$715.99 million) during the same period last year.

Earlier this year, the Cabinet Committee on Economic Affairs approved an equity infusion of ₹15 billion (~$181.26 million) in IREDA.

In 2020, IREDA signed a deal with SJVN to help develop an action plan to create and acquire renewable energy projects for the next five years.

SJVN Green Energy signed a memorandum of understanding with the Assam Power Distribution Company (APDCL) to invest ₹60 billion ($725.03 million) to develop 1,000 MW of floating solar projects in the state.

 

(The story was updated with information from the company’s NSE filing)