State Bank of India (SBI) has sanctioned loans worth ₹2,317 crore to rooftop solar power projects for an aggregate capacity of 575 MW to a host of corporate entities including the Adani Group, JSW Energy, Tata Renewable Energy among others.
This follows a line of credit of $625 million availed by the lender from the World Bank for on-lending to viable grid Connected Rooftop Solar projects, SBI chairman Rajnish Kumar said, announcing the funding.
The World Bank had sanctioned the line of credit to SBI in September. This will be available for five years.
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SBI has so far sanctioned 43 projects with aggregate credit facilities of ₹2,766 crore under the programme. This would add 695 MW of solar rooftop capacity to the grid, and is a significant step towards meeting the government’s target of 40GW of solar rooftop installations, the bank said.
“With this we have already sanctioned 50% of the funding,” Mr. Kumar said, adding that bad loans in the renewable energy sector was ‘close to nil’.
While SBI has availed the line of credit at cost of 90 bps above 6 month libor, it has priced the loan for its clients at 15 bps over its one year marginal cost of fund based lending rate (MCLR).
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