SunBorne Energy has tied up funds to the tune of Rs 140 crore from domestic banks for its 15 megawatt (MW) solar photovoltaic plant in Gujarat. The total project cost is estimated in the range of Rs 200-240 crore.
State Bank of Patiala, the lead bank, with three other banks, Export-Import Bank of India, Canara Bank and State Bank of Travancore, participated in the debt program. The debt advisory was led by SBI Capital Market Limited (SBICAPS).
Mr James Abraham, Managing Director and CEO, SunBorne, said that the support from Indian banks demonstrates their increasing confidence in the solar industry.
Indian commercial banks are lending cautiously to projects in the solar sector because large scale projects are being commissioned for the first time in India, Mr Anil Nayar, Executive Director and CFO, SunBorne said, adding that “banks are trying to better grasp the technology risk and understand execution capability of the developers.”
“While there is enormous potential to install solar power in India, bankability and financing has been a key concern for many project developers. With Indian banks coming forward to fund solar projects, the prospect for the second phase of National Solar Mission and other State projects only look brighter,” he said
This project is one of the early and larger projects in Gujarat. The company plans to commission it before December 31. The plant will provide 15 MW of photovoltaic power, producing enough electricity annually to power more than 10,000 households. The project shall also generate carbon credits under the CDM mechanism of UNFCCC.