IDFC Bank Lends .₹ 675 cr for Ra­jasthan So­lar Pro­ject

The Economic Times - - Finance & Commodities - Saikat.Das1@ times­

Mum­bai: IDFC Bank is cre­at­ing a re­new­able en­ergy niche in loans, sanc­tion­ing .₹ 675 crore to a Ra­jasthan-based so­lar power pro­ject owned by French com­pany So­lairedi­rect.

The deal could be an early sign of a re­vival of lend­ing in In­dia, es­pe­cially af­ter growth in in­dus­try credit hit a 62-year low of 5.1% year-on-year in 2016,down­from10.6%inthep­re­vi­ous year.Emailssent­toIDFCBankre­mained unan­swered at the time of go­ing to print. Gau­rav Sood, man­ag­ing diY-o-y growth rec­tor of So­lairedi­rect En­ergy In­dia, of lend­ing in con­firmed the mat­ter, say­ing the 2016 funds were for the pro­ject at Bhadla in Ra­jasthan be­ing de­vel­oped un­der the Na­tional So­lar Mis­sion. “Our NSM Bhadla pro­ject, which is un­der So­laire’s con­struc­tion cur­rently, is tak­ing proex­ist­ing so­lar ject fi­nance from IDFC Bank for .₹ 675 projects crore at a debt-eq­uity ra­tio of 70:30,”

he said. IDFC Bank is charg­ing 11% in­ter­est dur­ing the con­struc­tion pe­riod and 10.5% from the start of commercial op­er­a­tions. The debt is for an18-year tenor.

The loan has been chan­nelised through a spe­cial pur­pose ve­hi­cle called So­laire Surya Urja Pvt. IDFC Bank’s loans grew 53% year-on-year to .₹ 71,354 crore (out­stand­ing credit) dur­ing the Oct-Dec pe­riod. The bank is ex­pand­ing its credit pres­ence through fin­tech star­tups in Su­rat, Ra­jkot, Chandi­garh and Ben­galuru. The pace of loan growth by banks plunged last year as com­pa­nies put con­sump­tion and eco­nomic ac­tiv­ity on hold with the pres­sures of the cash crunch.

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