SJVN secures $111.3 million Japanese loan to fund solar projects

SJVN has secured around INR 915 crore ($111.3 million) loan to partly finance its 90 MW Omkareshwar floating solar project in Madhya Pradesh and 100 MW Raghanesda solar project in Gujarat.

March 31, 2023 Uma Gupta

Image: SJVN

State-run hydropower producer SJVN has secured a JPY 15 billion (approx. INR 915 crore) loan from Japanese banks to finance its 90 MW Omkareshwar floating solar project in Madhya Pradesh and 100 MW Raghanesda solar project in Gujarat. The combined cost of these projects is estimated at INR 1,288.35 crore.

While 60 % of the debt arranged will be financed by the Japan Bank for International Cooperation (JBIC), the balance will come from commercial banks of Japan, viz, MUFG Bank and San-in Godo Bank.

The two projects being financed by JBIC are scheduled for commissioning in the year 2023 itself and will produce about 450 million units of electricity in their first year of operation.

For this green finance, SJVN and JBIC virtually inked the ‘Facility Agreement’ under JBIC’s Global action for Reconciling Economic growth and Environmental preservation (GREEN) program.

SJVN targets 25 GW of power generation capacity by 2030, more than half of which is bound to come from solar and wind resources. It emphasized more association with JBIC for green financing in the near future.

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