Avaada Group Secures Rs 315 Cr Financing For Karnataka Solar Project

Avaada Group Secures Rs 315 Cr Financing For Karnataka Solar Project

The renewable energy arm of Avaada Group, Avaada Energy, has announced that it has closed the financing of about Rs 315 crore from Aseem Infrastructure Finance Limited (AIFL), an IFC (Infrastructure Finance Company), said the company statement.

The company has secured financing for its solar PV power project being developed under a long-term captive Power Purchase Agreement (PPA) with Karnataka Cooperative Milk Producers’ Federation Limited (KMF). The project is located in the Kalaburagi district of Karnataka. KMF is the apex body for the dairy co-operative movement in Karnataka, rated A+ (Stable) by ICRA. This financing from AIFL, sanctioned as a 21-year project loan facility obtained on very competitive terms, demonstrates Avaada’s derisked project development strategy and strong project financing capability.

Vineet Mittal, Chairman of Avaada Group, said, “This successful financial closure of INR 315 crore demonstrates our long-standing relationship with Aseem Infrastructure Finance. This renewed partnership highlights the trust and confidence leading financial institutions like Aseem have in Avaada’s capabilities. The funding will facilitate the development of this marquee captive project for a cooperative entity, illustrating the pervasive impact of energy transition across the Indian economy. This project is expected to be completed during Q3 FY25. This initiative aligns with Avaada Group’s broader sustainability strategy and commitment, playing a pivotal role in driving national self-reliance and a greener future.

Recently, Avaada Energy secured a 1050 MWp capacity for the solar project at a competitive tariff of Rs 2.69 per kWh. NTPC released the tender for this project on February 8, 2024. This project is expected to be completed within 24 months of signing the 25-year Power Purchase Agreement (PPA). In addition to this, Avaada Energy has achieved Letters of Award and PPAs for over 15 GWp in India. The company also achieved Letters of Award and PPAs of over 15 GWp in India.