SECI Seeks Proposal To Finance 300 MW Solar Project In Andhra

SECI Seeks Proposal To Finance 300 MW Solar Project In Andhra

The Solar Energy Corporation of India (SECI) has now sought proposals from banks and financial institutions. The government entity plans to use this financing to fund its upcoming 300 MW solar project at Ramagiri in Andhra Pradesh.

The Central Public Sector Enterprise (CPSE) has planned to procure a Rs 1000 crore term loan for this. SECI said that the total estimated project cost is Rs 1418.65 crore (including IDC). The agency plans to fund it at debt-equity ratio of 70:30. It however said that debt:equity ratio may vary upto 80:20 too.

SECI said that the organization can manage the equity contribution through internal accruals/Viability Gap Funding (VGF) from IREDA. But, it will require debt through term loans from banks or financial institutions. It will hope to raise debt at very fine levels of course, considering its own highest credit rating as well as government ownership.

IREDA’s VGF support 

The Indian Renewable Energy Development Agency Limited (IREDA) had earlier awarded 1200 MW capacity to SECI with a Viability Gap Funding (VGF) of Rs 44.72/MW under the CPSU Scheme Phase-II (Government Producer Scheme).

Out of the 1200 MW of capacity, 300 MW is proposed to be developed at Ramagiri and Muthuvakuntia villages of Sri Sathysai district of Andhra Pradesh. The project already has received in-principle approval from the Board of SECI and the Union government. The project is now under process.

Power to be sold for MP Discom 

As per the plan, the power produced from the proposed solar plant in the Andhra Project will be sold to a discom of Madhya Pradesh. The MP Power Management Company Limited (MPPMCL) will produce solar power at a tariff of Rs 2.57 per kWh. SECI has also identified 907.87 acres of government land for outright purchase and 270.93 acres of APSRTC land on lease. SECI has also issued a tender for the supply of modules and for developers who can construct the project on-site.