Avaada Energy Gets Rs 1,190 Crore SBI Loan For Gujarat Solar Project

Avaada Energy Gets Rs 1,190 Crore SBI Loan For Gujarat Solar Project

Mumbai-based green energy company Avaada Energy has announced that it secured a Rs 1,190 crore loan for a new solar project in Gujarat from the State Bank of India (SBI). The project is located in Surendra Nagar district of Gujarat.

According to a statement by the company, the loan has been sanctioned for a 20-year project that will lead to the development of a 400 MWp utility-scale solar PV power project in Surendra Nagar. The company also apprised that power generated from the project will be procured by Gujarat Urja Vikas Nigam Limited (GUVNL), an apex body of the government of Gujarat, engaged in the bulk purchase and sale of electricity.

Vineet Mittal, Chairman of Avaada Group, said, “We are delighted to strengthen our relationship with the State Bank of India (SBI) through our project financing agreement.”

“This landmark transaction marks Avaada’s first endeavour in developing a greenfield project under an existing Special Purpose Vehicle (SPV) that already possesses an operational project. This strategic arrangement will enable the organisation to optimise its capital structure and simplify the ownership structure of its project subsidiaries, demonstrating Avaada’s approach to managing and expanding its renewable asset base,” Avaada Group said in a statement.

Last month, Avaada Energy, the renewable energy arm of Avaada Group, announced the successful closure of one of the largest refinancing transactions in India’s renewable energy sector, securing about Rs 4,471 crore from the state-owned lender, the National Bank for Financing Infrastructure and Development (NaBFID). This refinancing transaction, conducted under a Restricted Group (RG) structure, encompasses four ISTS-connected solar projects with a combined capacity of 1700 MWp in the state of Rajasthan.