The Solar Energy Corporation of India (SECI) has invited bids from scheduled commercial banks or financial institutions for a term loan of ₹10 billion (~$120.24 million) to develop a 300 MW solar power project in the Ramagiri village of Sri Satya Sai District in Andhra Pradesh.

The loan must be on a single/multiple bank lending basis at a competitive rate of interest for 20 years, including a moratorium of two years. The minimum amount to be offered by the bank must be ₹2.5 billion (~$30.06 million) and in multiples of ₹2.5 billion (~$30.06 million) thereafter.

The approved loan must be disbursed within two years of signing the loan agreement.

The last date to submit the proposals is January 21, 2024.

SECI was awarded the contract to develop 1.2 GW solar projects by the Indian Renewable Energy Development Agency (IREDA) with a viability gap funding (VGF) of ₹4.47 million (~$53,748)/MW under the Central Public Sector Undertaking Program Phase-II.

Out of the total capacity, 300 MW was proposed to be developed in Ramagiri, Andhra Pradesh. SECI had floated the tender for the designing, engineering, testing, and commissioning of this project in April this year.

The total project cost is estimated to be ₹14.19 billion (~$174.23 million), including interest during construction and subtracting the solar park subsidy from the Ministry of New and Renewable Energy. The capital expenditure for the project is proposed to be funded at a debt-equity ratio of 70:30, variable up to 75:25.

SECI plans to meet the equity from internal accruals/VGF to be received from IREDA and the debt requirement through term loans from banks.

The power generated from the project will be sold to the Madhya Pradesh Power Management Company at ₹2.57 (~$0.031)/kWh.

SECI has identified 907.87 acres of land for the project, out of which it has taken possession of 899.43 acres.

It has also received in-principle approval of connectivity for the 300 MW solar project at 220 kV level of Pavagada, 400/220 kV Central Transmission Utility Substation.

SECI recently paid solar and wind power producers ₹10 billion (~$120.24 million) for the energy purchased in October 2023.

It recently issued a tender to select solar power developers for setting up 1 GW inter-state transmission system-connected solar projects (Tranche XII) in India.

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