SECI Invites INR 1,000 Crore Financing Proposal for 300 MW Solar Project in Andhra Pradesh

Solar Energy Corporation of India Ltd. (SECI) has issued a request for proposals from scheduled commercial banks and financial institutions for a INR 1,000 crore term loan to fund the development of a 300 MW solar photovoltaic (PV) power project in Ramagiri and Muthuvakuntla villages, Sri Sathya Sai district, Andhra Pradesh.

The 300 MW project forms part of the 1,200 MW capacity allocated to SECI under the Central Public Sector Undertaking (CPSU) Scheme Phase-II. This scheme benefits from Viability Gap Funding (VGF) of INR 44.72 lakh per MW provided by the Indian Renewable Energy Development Agency (IREDA). While SECI's board has granted in-principle approval for the project, formal government clearance is awaited. The project, estimated to cost INR 1,418.65 crore, will be financed through a mix of 70 percent debt and 30 percent equity. The equity portion will be covered by SECI's internal resources and the allocated VGF, with the remaining amount sourced from the proposed term loan.

Land acquisition for the project is well underway, with 1,178.8 acres identified, comprising 907.87 acres of government land and 270.93 acres leased from the Andhra Pradesh State Road Transport Corporation (APSRTC). Advance possession has been secured for 1,173.62 acres, with efforts continuing to finalize the remaining land. The project will supply power to the Madhya Pradesh Power Management Company Limited (MPPMCL) under a power sale agreement at a tariff of INR 2.57 per kWh. Additionally, in-principle connectivity approval has been obtained for power evacuation through the 220kV level of the Pavagada 400/220kV CTU substation, ensuring robust infrastructure readiness.

SECI has already floated tenders for module supply and is preparing to issue a tender for the selection of an EPC contractor to complete the remaining project works and commissioning. Financial institutions interested in the term loan are required to submit proposals by December 19, 2024. These proposals must outline competitive terms, including interest rates linked to benchmark rates, repayment schedules, and other relevant conditions. The loan will have a tenure of 20 years, including a two-year moratorium.

SECI has been a pivotal player in India's renewable energy journey, having facilitated the award of over 71 GW of renewable capacity, including solar, wind, and hybrid power projects. The organisation also owns and operates 123 MW of solar capacity and continues to expand its portfolio as part of India’s ambitious renewable energy targets.