EESL Inks Pact for Rs 500 Cr First Long-Term Rupee Loan

The Punjab National Bank (PNB)-issued funds will be utilized by the company towards funding its capital expenditure for its flagship programmes including Street Lighting National Programme, Smart Meter National Programme, Solar Substation, and E-Mobility project.

Energy Efficiency Services Ltd (EESL), a joint venture of PSUs under the Union Ministry of Power, has raised its first long-term Rupee loan for Rs 500 crore.

The Punjab National Bank (PNB)-issued funds will be utilized by the company towards funding its capital expenditure for its flagship programmes including Street Lighting National Programme, Smart Meter National Programme, Solar Substation, and E-Mobility project.

Further, this seven-year loan pact was signed with a two-year moratorium, with the interest rate being linked to the bank’s Marginal Cost of Fund-Based Lending Rate (MCLR), which is presently at 8.45 percent per annum, the company said in a statement.

Commenting on the occasion, EESL, Managing Director, Saurabh Kumar said, “This is a truly landmark moment in our company’s history, and holds much significance for the future of the energy efficiency market and overall EE ecosystem in India. Targeted at expanding the reach and impact of our energy efficient lighting, smart metering, renewable energy and electric vehicle programmes.”

In March 2018, EESL and its UK subsidiary EnergyPro Assets Ltd (EPAL) acquired CHP firm Edina UK Ltd for Rs 493 crore (£55 million) which was the first-of-its-kind venture by an entity under the Ministry of Power, Government of India.

Besides, in May 2018, EESL also signed a loan agreement with the World Bank for Rs 20.40 billion (USD 300 million) to scale up deployment of energy saving measures in residential and public sectors etc.