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SECI Seeks INR 6.6 Billion in Loans for 200 MW Solar Project in Madhya Pradesh

Solar Energy Corporation of India has invited bids from scheduled commercial banks and financial institutions to secure term loans worth Rs6.6 billion for financing a 200 MW solar power project in Dhar, Madhya Pradesh.

The total estimated cost of the project stands at Rs9.45 billion, including Rs1.3 billion in subsidy and viability gap funding support. The project is expected to be completed by May 22, 2027, aligning with India’s ongoing push to expand solar capacity.

SECI has already obtained in-principle grid connectivity for the project, with power evacuation planned through the 220 kV network linked to the Badnawar substation of the state transmission system.

As per the tender terms, bidders must offer a minimum loan amount of Rs1.5 billion, with bids allowed in multiples of Rs100 million. The financing structure is proposed at a debt-equity ratio of 80:20, with flexibility to adjust up to 70:30.

The loan tenure is set at 20 years, including an 18-year repayment period and a two-year moratorium. Repayment of the principal will be carried out on a half-yearly basis, while interest payments will be made monthly. The loan is expected to be fully drawn within two years, with interest rates reset at intervals of up to six months.

This initiative reflects SECI’s continued efforts to facilitate financing for large-scale solar projects and ensure timely development of renewable energy infrastructure in the country.