Request for proposal for sanction of term loan of Rs. 2,720 crores for 700 MW Solar PV Power Plant at Radhanesda, Gujarat – EQ

Summary:

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## 1. Project & Borrower Overview

– **Borrower**: Solar Energy Corporation of India Ltd. (SECI) – a Government of India enterprise under MNRE.
– **Credit Rating**: ‘AAA’ by ICRA Ltd and CARE (lowest credit risk).
– **Role**: SECI is a Renewable Energy Implementing Agency (REIA) with over **76.525 GW** of renewable projects awarded.
– **Project**: 700 MW Solar PV Power Plant at Radhanesda, Gujarat.
– **Power Offtake**: Gujarat Urja Vikas Nigam Limited (GUVNL) at a tariff of **₹2.45/kWh**.
– **SCOD**: 6th February 2028.

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## 2. Financing Request

| Parameter | Detail |
|———–|——–|
| **Loan Amount** | Up to ₹2,720 crores |
| **Debt-Equity Ratio** | 80:20 (can vary up to 70:30) |
| **Total Project Cost** | ₹3,393.96 crores (net of CFA & VGF) |
| **Repayment Tenure** | 18 years |
| **Moratorium** | Construction period (19 months) + 1 additional year |
| **Basis** | Single or multiple bank lending |
| **Interest Rate** | Competitive (to be proposed by banks) |
| **Proposal Deadline** | 14th May 2026 |

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## 3. Key Business & Financial Terms (Annexure A)

| Item | Terms |
|——|——-|
| **Reset Period** | Not less than 3 months |
| **Commitment Fees** | NIL |
| **Upfront / Processing / Legal / Document Fees** | NIL |
| **Prepayment Premium** | NIL (subject to 15 days’ notice) |
| **Disbursement** | As per SECI’s requirement, during moratorium period |
| **Repayment Frequency** | Principal – Half-yearly; Interest – Monthly |
| **Security** | First pari-passu charge on fixed assets (movable & immovable) of the 700 MW plant |
| **Security Ranking** | Exclusive / pari-passu with all term lenders |

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## 4. Current Project Readiness

– **Land**: ~1,105 hectares (2,729 acres) allocated by Gujarat Govt. Revenue Department.
– **Evacuation**: Through proposed GETCO 220 kV substation at Radhanesda.
– **Procurement**: Tendering underway for modules, power transformers, and Balance of System (BOS).
– **DPR**: Prepared by SECI’s in-house engineering team.
– **Financial Due Diligence (FDD)**: Being done by CRISIL Ltd.

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## 5. Business Implications for Lenders

### ✅ Strengths (Low Risk Indicators)

– **AAA-rated government enterprise** – virtually no default risk.
– **Long-term PPA** with GUVNL at a fixed tariff – assured revenue stream.
– **Government support** – CPSU Scheme, VGF, and solar park funding reduce project cost.
– **No upfront fees** and **no prepayment penalty** – attractive for banks seeking flexibility.
– **Pari-passu security** on dedicated project assets – clear lender rights.

### ⚠️ Considerations

– **Single-project security** – no cross-collateral with SECI’s other assets.
– **Long tenor (18 years)** – interest rate risk management needed.
– **Competitive bidding** – banks must offer attractive rates.
– **Construction phase risk** – though moratorium covers 19 months + 1 year.

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## 6. Proposal Submission Details

– **Address**:
6th Floor, Plate-B, NBCC Office Block, Tower-2, East Kidwai Nagar, New Delhi – 110023
– **Envelope Marking**: *“Bid for Funding the Credit requirement of SECI of Rs. 2,720 Crores”*
– **Contact Persons**:
– Sh. Mohit Singhal, Deputy Manager (Fin.) – 011-24666287
– Sh. Akash Sharma, Sr. Accounts Officer – 011-24666386

– **Right to Reject**: SECI reserves the right to accept/reject any or all proposals or reduce quantum without assigning any reason.

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