Solar Energy Corporation of India Limited (SECI) has invited proposals from scheduled commercial banks and financial institutions for sanction of a term loan of up to Rs 6.6 billion. The financing is intended for the development of a 200 MW grid-connected solar project at Dhar, Madhya Pradesh. The project, with a 25-year power purchase agreement, is expected to achieve commercial operation in May 2027. Furthermore, power generated from the project will be supplied to Madhya Pradesh Power Management Company Limited at a tariff of Rs 2.45 per kWh.
According to the tender guidelines, the total net project cost is estimated at Rs 8.153 billion, proposed to be financed through a debt-equity ratio of 80:20, with equity to be met through SECI’s internal resources and debt arranged through rupee term loans. However, the debt-equity ratio can also vary up to 70:30. The proposed loan tenure is 20 years, including a two-year moratorium period, with repayment scheduled over 18 years. The loan will be secured through a first pari-passu charge on project assets, with equal ranking among all term lenders. Additionally, it will have a minimum offering size of Rs 1.5 billion and will be in multiples of Rs 100 million thereafter. The disbursement will be aligned with SECI’s requirements and completed within two years from the date of the loan agreement. The repayment of principal will be undertaken on a half-yearly basis, with monthly interest payments.
The project, with a viability gap funding support of Rs 4.472 million per MW, is part of the 1,200 MW capacity awarded to SECI by Indian Renewable Energy Development Agency Limited under the CPSU Scheme Phase-I. SECI has identified approximately 459.898 hectares of land across Gadi, Rajod, and Nawapada villages in Dhar district. In line with project requirements, in-principle grid connectivity has been secured at the 220 kV level of the Madhya Pradesh Power Transmission Company Limited’s Badnawar substation. The contracts for the supply of modules and balance of system have been awarded to FS India Solar Ventures and Amar Infrastructure Limited at costs of Rs 4.741 billion and Rs 4.394 billion, respectively. The deadline for submission of proposals is April 24, 2026.
