Avaada Energy Secures Rs 1,190 Crore Loan from SBI for Gujarat Solar Project

Avaada Energy obtains Rs 1,190 crore loan from SBI for a new solar project in Gujarat.

  • Avaada Energy obtains Rs 1,190 crore loan from SBI for a new solar project in Gujarat.
  • The 20-year project loan facility will support the development of a 400 MWp solar PV power project.
  • Power generated will be procured by Gujarat Urja Vikas Nigam Limited (GUVNL).

In a significant development, Avaada Energy has successfully secured a loan of Rs 1,190 crore from the State Bank of India (SBI) for its upcoming solar project in Gujarat. The financing, provided as a 20-year project loan facility, will aid in the establishment of a 400 MWp utility-scale solar PV power project situated in the Surendra Nagar district of Gujarat. The power generated from this project will be procured by Gujarat Urja Vikas Nigam Limited (GUVNL), contributing to the state’s renewable energy objectives.

This milestone achievement signifies Avaada’s inaugural venture in developing a greenfield project under an existing Special Purpose Vehicle (SPV), which already holds an operational project. Vineet Mittal, Chairman of Avaada Group, expressed delight over strengthening the collaboration with SBI through this project financing agreement. He highlighted the strategic significance of this arrangement, emphasizing its role in optimizing the capital structure and streamlining the ownership structure of Avaada’s project subsidiaries. This move aligns with Avaada’s commitment to managing and expanding its renewable asset base efficiently.

Avaada Group, encompassing various renewable energy initiatives, solar PV manufacturing, and the development of green fuels, including green ammonia and green methanol, aims to achieve a capacity of 11 GWp by 2026. With significant international investments, including commitments from Brookfield’s Energy Transition Fund and GPSC, Avaada remains steadfast in its mission to advance sustainable energy solutions and contribute to India’s renewable energy landscape.