By Trend News Line 2024-05-24 03:34:41.
Tata Power Co. to Raise $1 Billion for Clean Energy Projects
In a groundbreaking move, Indian power generation firm Tata Power Co. is set to secure a loan of up to $1 billion for its clean energy projects. This loan, if finalized, could potentially be the largest local currency loan in India for the year.
Lenders Involved in the Deal
Tata Power Co., a unit of the esteemed Tata Group, is currently in discussions with several major lenders for this significant loan. Among the financial institutions involved are State Bank of India, IndusInd Bank, Axis Bank, and ICICI Bank. These negotiations are being conducted in strict confidentiality, with sources close to the matter choosing to remain anonymous.
Investment in Clean Energy
The funds raised from this loan will be allocated towards Tata Power’s ambitious investment plan of $1.6 billion for the development of clean energy projects, particularly focusing on pumped hydro storage. This move aligns with India’s goal of substantially increasing its green power capacity by the end of the decade.
Renewable Energy Expansion
Tata Power, along with other key players in the industry such as Adani Green Energy Ltd. and Reliance Industries Ltd., is actively expanding its renewable energy portfolio. The company has set its sights on a remarkable fourfold growth in its renewable generation capacity by 2027.
Loan Details
The loan structure under consideration could be either a bilateral loan or a clubbed facility. Tata Power anticipates finalizing the credit lines with the lenders within the next three to six months. Disbursements will then be made in stages based on the progress of the project development. The loan terms may be linked to local benchmarks like the Reserve Bank of India’s repo rate or treasury bills.
Responses from Stakeholders
Neither Tata Power nor the banks mentioned have provided any official comments regarding this potential deal. The negotiations are still ongoing, and the specifics of the loan agreement may undergo further revisions.
Conclusion
In a bid to accelerate its clean energy initiatives, Tata Power Co. is on the brink of securing a substantial loan that could propel its renewable energy expansion plans. With India’s increasing focus on green power solutions, this development signifies a significant step towards a more sustainable energy landscape..
– Tata Power clean energy projects
– Tata Power loan for clean energy.