Bondada Gets First Loan Credit Facilities From Canara Bank To Support TN BESS Project

Bondada Engineering has received sanction for credit facilities from Canara Bank to cover the debt portion of the total project requirement for its Battery Energy Storage System (BESS) project awarded by Tamil Nadu Green Energy Corporation Ltd (TNGECL). In a press release, the company said the latest sanction marks its first large-scale, bank-funded term loan.

This development represents a significant milestone in Bondada Engineering Limited’s strategic shift towards an asset-ownership model supported by stable, long-term, annuity-based revenue streams. The financial closure reflects strong lender confidence in the company’s execution capabilities, project viability, and governance framework, and positions Bondada Engineering to complete the project within the committed timelines.

About the Project

Bondada Engineering won a portion of the 500 MW/1,000 MWh BESS tender, securing 200 MW/400 MWh capacity at a tariff of ₹2,46,000 per MW per month in June 2025. The company secured the substantial enhancement in viability gap funding (VGF) for BESS projects announced in the recent Union Budget. This further reinforces the sector’s long-term growth potential and policy support.

Going forward, Bondada Engineering Limited remains focused on scaling its renewable energy and energy storage portfolio through disciplined capital allocation, robust governance, and operational excellence, with a continued emphasis on delivering sustainable long-term value to all stakeholders.

Previous Project

Telangana-based Bondada Engineering had previously secured a separate Battery Energy Storage System (BESS) project from Telangana Power Generation Corporation Limited (TGGENCO). This marked the company’s first order in the BESS business segment. The order is valued at ₹204.20 crore, including GST.

In the esratwhile tender, Bondada Engineering won the 50 MW capacity project from TGGENCO at a tariff of ₹2.40 lakh/MW/month. This was one of the first tenders released by TGGENCO for a standalone 500 MWh (250 MW x 2 hours) BESS project. The tender was issued under a viability gap funding (VGF) framework.