Tata Power concludes financing for 25 MW solar project

Tata Power today said its subsidiary Tata Power Renewable Energy Limited had finalised financing agreements for its Rs365-crore 25 MW solar photovoltaic (PV) power project at Mithapur in Gujarat Gujarat under the State's Solar Power Policy 2009.

The company said Tata Power Renewable Energy Limited had successfully tied up the entire debt requirement through a consortium of domestic lenders, namely State Bank of India and Export Import Bank of India with SBI Capital Markets Limited acting as the sole financial advisor and arranger.

The signing of financing agreements was completed on 2 December 2011. The company completed pre-disbursement formalities under the financing agreements for availing interim disbursement and received the first loan disbursement on 8 December 2011.

The project of approximately Rs365 crore is being funded through a debt equity mix of 70:30. The project financing comprises equity of Rs110 crore and rupee term loans of Rs255 crore.

Spread over 100 acres of land, the solar plant will be located along the coast of Gujarat and, according to Tata Power, is likely to be one of the largest of its kind in the country.

Tata Power has signed a power purchase agreement with Gujarat Urja Vikas Nigam Limited to supply power by end-December 2011.

The company has also executed a 3 MW solar photo-voltaic plant at Mulshi, one of the largest grid-connected solar projects in Maharashtra and had set up its first 100 kW solar power plant in 1996 at Walwhan in Lonavla.