Country's largest private power company, Tata Power on Tuesday announced that it had completed signing of financing agreement for its 25 MW solar photovoltaic (PV) power project at Mithapur, Gujarat.

Tata Power Renewable Energy Limited, a subsidiary of Tata Power, has successfully tied up the entire debt requirement through a consortium of domestic lenders, namely State Bank of India and Export Import Bank of India with SBI Capital Markets Limited acting as the sole financial advisor and arranger.

Rs.365 crore project

The project costing Rs.365 crore is being funded through a debt-equity mix of 70:30. The project financing comprises of equity of Rs.110 crore and rupee term loans of Rs. 255 crore. Crystalline silicon photovoltaic technology, which is modular, proven, and widely deployed, is the choice of technology for this project. The company has signed a power purchase agreement (PPA) for the project with Gujarat Urja Vikas Nigam. This plant is likely to be one of the largest of its kind in the country and will be ready to inject power into the system by end-December 2011. Commenting on the development, Tata Power Managing Director, Anil Sardana said “The signing of the financing agreements is a significant milestone for the project and we take this opportunity to thank our investors who have once again shown faith in Tata Power. We look forward to participating in many such initiatives in solar power.''

Keywords: Tata Power

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