The Assam Power Distribution Corporation Limited (APGCL) has invited an expression of interest from financial institutions for advancing a term loan to fund the development of a 25 MW solar park. APGCL is looking to finance Rs. 760 million from the total estimated cost of Rs 950 million through the term loan. The repayment period is set at 15 years and the moratorium period is two years. The loan will be used to finance the capital expense of the project. The financial institutions are requested to submit information including the proposed loan amount, interest rate, loan term moratorium period, repayment schedule, and interest payment options. Scheduled commercial banks and financial institutions registered with the reserve bank of India will be eligible for participation. Additionally, the applicant must have a minimum turnover of Rs 30 billion for their loan portfolio. The deadline for submission of bids is December 21, 2020.
As of September, Assam has 190 MW of solar capacity under development. Thestate has been gradually developing its solar segmentin recent months. In February 2020, APGCL invited bids for the procurement of a total of 100 MW of power from four grid-connected projects in the state. In January 2020, the state had floated a tender to develop 30 MW of grid-connected solar PV projects under Phase II of the central public sector undertaking programme. In March 2020, Jackson group announced the signing of a power purchase agreement with APGCL for a 70 MW solar project in Sivasagar, Assam.