According to reports, Tata Power announced the completion of signing of financing agreements for its proposed 25 mw solar photovoltaic power project at Mithapur, Gujarat. The project is being set up under the state’s Solar Power Policy 2009 through its subsidiary Tata Power Renewable Energy Limited.
The project of approximately Rs 365 crore is being funded through a debt equity mix of 70:30. The project financing comprises of equity of Rs 110 crores and term loans of Rs 255 crore.
Tata Power Renewable Energy tied up the entire debt requirement through a consortium of domestic lenders State Bank of India and Export Import Bank of India, with SBI Capital Markets Limited acting as the sole financial advisor and arranger. The company completed pre-disbursement conditions under the financing agreements for availing interim disbursement and received the first loan disbursement on December 8, 2011.
Spread over 100 acres of land, the solar plant will be located along the coast of Gujarat. Tata Power will apply crystalline silicon photo-voltaic technology for this project. The company has signed a power purchase agreement (PPA) for the project with apex state power utility Gujarat Urja Vikas Nigam Limited.
This plant is likely to be one of the largest of its kind in the country and will be ready to inject power into the system by end-December 2011.
Commenting on the development Tata Power MD Anil Sardana, in a media statement, said, “We look forward to participating in many such initiatives in solar power.” The company has also executed a 3 MW solar photo-voltaic plant at Mulshi, one of the largest grid-connected solar projects in the state of Maharashtra and had set up its first solar power plant of 100 kW, way back in 1996 at Walwhan in Lonavla.