₹ 23.2 Billion Credit to Indian Companies for Solar Rooftops

by Staff Correspondent November 1, 2017

written by Staff Correspondent November 1, 2017

The TrickyScribe: State Bank of India (SBI) and the World Bank, in a much-awaited move, have announced ₹23.2 billion in credit facilities for seven Indian solar companies that will be used to develop grid-connected solar rooftop projects with an aggregate capacity of 575 MW. Tata Renewable, Azure Power, Cleantech Solar, Adani Group, Hinduja Renewables, JSW Energy and Hero Solar Energy are the ones likely to benefit.

Line of credit is being made available under the SBI-World Bank Grid Connected Rooftop Solar PV program. The World Bank will provide the funds to SBI, which will then lend it on to the solar companies. The approval documents were handed to the companies at a solar rooftop conference organized by SBI.

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According to SBI Chairman Rajnish Kumar, “Financing is being provided to those with sound technical capacity, relevant experience, and creditworthiness that meet SBI standards.”

SBI has so far funded 43 grid-connected rooftop solar projects worth ₹27.66 billion under the SBI-World Bank Grid-Connected Rooftop Solar PV program. The projects have a combined capacity of 695 MW.

The bank’s renewable energy loan portfolio currently stands at ₹120 billion. Earlier, in May 2016, the World Bank and SBI also signed agreements for a $625 million facility to support India’s grid-connected rooftop solar program.

Government-owned SBI is one of the most active lenders for solar projects in India. In April 2017, the European Investment Bank (EIB) approved an EUR-200 million, 20-year loan for the SBI to help develop large-scale solar projects in India.

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The SBI, in June last, announced that it would provide ₹4 billion to private developers to finance 100 MW of grid-connected rooftop solar projects in India. Funding recipients under this program were expected to include Azure Power, Amplus, and Cleanmax amongst others. The capacity of the projects and programs to be financed ranged from 25 kW to 16 MW.