Cleantech Solar Raises Rs 6.25 Billion From Tata Capital for Indian RE Projects

Mukesh Kumar appointed as Vice President Finance and Investments at Cleantech Solar. Photo: Cleantech Solar

Singapore headquartered Cleantech Solar has successfully secured a substantial long-term senior secured loan facility of Rs 6.25 billion from Tata Capital Limited. This funding is earmarked for bolstering its open access portfolio within India. Cleantech Solar stands as a prominent provider of renewable energy solutions catering to corporate entities across India and Southeast Asia. It currently manages a C&I portfolio of 1.2 GW.

A portion of the loan has already been drawn down, with the remainder slated for disbursement in 2024. This allocation is intended to fulfill the financial requisites of Cleantech’s ongoing pipeline of open access projects under development.

The Rupee Term Loan (RTL) will be deployed towards the construction, development, and operational aspects of solar and wind parks under the open access framework, spanning various states in India. Cleantech Solar’s strategic focus lies in expanding its commercial and industrial (C&I) portfolio, which currently stands at 1.2 GWp, aligning seamlessly with its dedication to sustainable expansion.

The renewable energy generated by these open access projects will be procured by esteemed corporate consumers on a captive basis to fulfill their energy demands for manufacturing and business operations. These projects cater to a diverse array of sectors, including automotive, FMCG, apparel, industrial equipment, and chemical manufacturing, among others.

Sachin Jain, CEO of Cleantech Solar, said, “This financing from Tata Capital will expedite the deployment of our open access renewable energy projects in India, delivering sustainable power to leading global corporates. It underscores our commitment to strengthening these collaborations and accelerating our journey towards a carbon-free future.”

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Pankaj Sindwani, Chief Business Officer – Cleantech Finance, Tata Capital, added, “This loan facility will facilitate access to affordable green power across corporates from varied sectors and geographies thus meeting their carbon footprint targets. Since the market is still in nascent stage, such innovative capital solutions will be critical to bridge the financing gap to accelerate the shift to renewable energy.”

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In 2021, Cleantech Solar got Rs 2 billion (US $75 million) senior secured loan from NIIF IFL for its Open Access projects in India. It has green loan of US $75 million from ING bank and also has loan facilities from SBI-World Bank.

The company recently signed a 15 year captive PPA with First Solar for setting up 150 MW solar PV and about 17 MW wind energy projects in Tamil Nadu. Cleantech Solar commissioned a 37-MW solar power project in Maharashtra for manufacturing industries.