IDFC Bank Lends .₹ 675 cr for Rajasthan Solar Project
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.