In Short : SJVN (Satluj Jal Vidyut Nigam) has secured construction finance of Rs 100 billion for renewable energy projects. This substantial financial backing is crucial for advancing and implementing renewable energy initiatives, contributing to India’s clean energy goals and sustainable development.
In Detail : In a first-of-its-kind transaction undertaken by a public sector undertaking, SJVN, a joint venture between the Government of India and the state of Himachal Pradesh, secured Rs100 billion (~$1.2 billion) construction financing facility to fund its upcoming renewable energy projects. The financing was raised by Deutsche Bank, State Bank of India, Punjab National Bank, Bank of India and, Mitsubishi and United Financial of Japan Financial Group (MUFG) Bank.
The facility will be of a revolving nature and would allow SJVN to draw down funds on an ongoing basis as per the construction requirements of its projects. This is expected to enable the fasttracking of its under-construction renewable energy projects and contribute to India’s target of achieving 500 GW of renewable energy by 2030.
“We are exhilarated to have secured this facility from five leading banks, which underscores the financial community’s recognition of our commitment to a greener and more sustainable future,” said Nand Lal Sharma, Chairperson and Managing Director.
He said the construction financing facility will be deployed strategically to develop solar and wind energy projects across India. These projects will create employment opportunities, boost the local economy, and contribute significantly to harnessing renewable energy. The company’s renewable energy portfolio stands at 5,090.5 MW, out of which 179.5 MW is under operation, 1,860 MW is under construction, and 3,051 MW is under various stages of implementation. SJVN Green Energy also received the go-ahead to form a joint venture with Maharashtra State Power Generation Company to develop 5,000 MW renewable energy projects.