Avaada Energy, on Thursday 2 May announced that they have secured a Rs 1,190 crore loan from State Bank of India (SBI) for its ner solar project. 

In its regulatory filing, the company said that the lender sanctioned and disbursed a 20-year project loan facility that will support the company for the development of a 400-megawatt peak (MWp) utility-scale solar photovoltaic (PV) power project in the Surendra Nagar district of Gujarat. 

The power generated from this solar project will be procured by an apex body of the government of Gujarat, Gujarat Urja Vikas Nigam Limited (GUVNL) who are engaged in the bulk purchase and sale of electricity.

This highlights the company’s first endeavour in developing a greenfield project under an existing Special Purpose Vehicle (SPV) that already possesses an operational project. 

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

This agreement will enable the company 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.