The Solar Energy Corporation of India (SECI) has invited proposals from scheduled commercial banks and financial institutions for ₹6.6 billion (~$71.1 million) term loans from banks for a 200 MW solar project being set up in Dhar, Madhya Pradesh.

The solar project has an estimated cost of ₹9.45 billion (~$101.75 million), including a ₹1.3 billion (~$14 million) subsidy and viability gap funding, totaling to ₹8.15 billion (~$88 million) from the Ministry of New and Renewable Energy. It is expected to be completed by May 22, 2027.

SECI has secured in-principle grid connectivity to evacuate power from the solar project at the 220 kV level from the Madhya Pradesh Power Transmission Company’s 400/220 kV Badnawar substation.

Bidders must offer a minimum loan amount of ₹1.5 billion (~$16.15 million) in multiples of ₹100 million (~$1.08 million).

Selected bidders must structure the loan at a proposed debt-equity ratio of 80:20, which may vary to 70:30. The total loan tenor will be 20 years, including a repayment period of 18 years and a moratorium of two years. The principal amount will be repaid on a half-yearly basis, and the interest, on a monthly basis.

The loan will be drawn within two years. The maximum loan interest rate rest period is six months.

This February, SECI invited quotations from scheduled commercial banks to invest ₹4.5 billion (~$49.603 million) in term/fixed deposits.

Last year, SECI’s ₹6 billion (~$71.86 million) debenture issue was subscribed over 3.5 times. The unsecured, rated, non-cumulative, non-convertible, redeemable, and taxable debentures were listed on the National Stock Exchange.

Recently, MNRE designated SECI as the sole renewable energy implementing agency (REIA) for issuing renewable energy procurement bids as an intermediary procurer. However, other REIAs will continue to manage and fulfill obligations related to bids already issued by them, including ensuring the signing of power sale agreements and power purchase agreements for projects for which letters of award have been granted.