Mahindra Susten, the clean-tech arm of the Mahindra Group, has closed a financing deal worth ₹14.48 billion (~$170.6 million) with HDFC Bank and Axis Bank for its 560 MW solar projects in Gujarat and Rajasthan.

The funding will facilitate the construction of these projects under long-term power purchase agreements with Gujarat Urja Vikas Nigam (GUVNL) and Rajasthan Urja Vikas Nigam (RUVNL).

Upon completion, the solar power projects are projected to generate approximately 900,000 MWh of electricity annually. This output will help offset around 819,000 tons of CO2 emissions each year and provide clean energy to an estimated 180,000 households annually.

Mahindra Susten’s portfolio spans an engineering, procurement, and construction capacity of over 4 GW, an independent power producer business with around 1.54 GW of developed solar projects and 3.14 GW of renewable power projects in the development pipeline spread across several states.

In October, Mahindra Susten was declared one of the winners of NTPC’s auction to set up 1,200 MW of interstate transmission system (ISTS)-connected solar power projects. The company won a capacity of 176 MW at a tariff of ₹2.51 (~$0.0299)/kWh.

It also won 300 MW capacity at a tariff of  ₹2.57 (~$0.0306)/kWh in NHPC’s auction to develop 1.2 GW ISTS-connected solar power projects.

Earlier this year, the company, in collaboration with the Ontario Teachers’ Pension Plan Board, said it would develop a 150 MW hybrid renewable power project involving an investment of ₹12 billion (~$143.8 million). The project will comprise ~101 MW of wind and ~52 MW of solar capacity. Scheduled for commissioning within the next two years, it will incorporate over 80% locally manufactured components. The two companies have also set up the Sustainable Energy Infra Trust, with an initial capital raise of ₹13.65 billion ($165 million), to advance the renewable energy sector in India.