SJVN Seeking Debt Financing of Rs 1000 Cr for Upcoming Solar Projects

Budget reactions

SJVN has issued an EoI inviting financing institutions to submit proposals for providing debt financing loans for its upcoming renewable projects (solar).

SJVN Ltd – a mini Ratna CPSU under the Ministry of Power – has issued an Expression of Interest (EoI) inviting eligible financing institutions to submit proposals for providing debt financing loans to the Government of India and Government of Himachal Pradesh JV for its upcoming renewable energy projects (mainly solar).

The CPSU claims that it is keen to take up new projects in order to increase capacity through organic as well as inorganic ways by acquiring financially feasible stressed assets and new renewable projects which shall come into generation/ operation within 12 months.

As per SJVN, the total cost of the project will be approximately Rs 1250 crore. And 80 percent of the cost (Rs 1000 crore) of the project will be arranged through debt financing. As per the terms of the EOI, the total tenure of the loans will be 16 years, with the first year being the moratorium period, and then a 15 year repayment period.

The following applicants will be eligible to express their interest for the project, individually and/or their consortium(s), provided that they can offer a minimum of Rs 300 crore loan and have the requisite licenses, etc.

1. Financing Institutions (FIs)/ Financing Companies (FCs)
2. Banks viz. Public Sector or Private Sector.

The last date for submission of proposals is September 30, 2020.

Recently, the firm had also announced that it will be commissioning the 100 MW solar PV power plant which was awarded under the GUVNL tender at the Dholera Solar Park at an outlay of Rs 450 crore. SJVN was awarded 100 MW capacity in the auction after submitting a bid for Rs 2.80 per unit. And will now develop the project on a build-own-and-operate basis.

SJVN Chairman and Managing Director Nand Lal Sharma confirmed that the tentative cost of the project is Rs 450 crore and that the project is expected to generate 244 million units in a year. The power purchase agreement will be signed for 25 years. Sharma said the solar park in the Dholera Special Investment Region is situated along the Gulf of Khambhat. And that at the current rates, the solar power generation cost is at par with that of thermal power generation, he said.