Avaada gets ₹12,800-cr loan to fund projects in Gujarat and Maharashtra

Mumbai: Renewable energy company Avaada Group has secured about ₹12,800 crore ($1.3 billion) from State Bank of India (SBI), Canara Bank and Rural Electrification Corp (REC) to finance projects in Gujarat and Maharashtra. This is one of the largest term-financing deals in the country this year.

Avaada founder and chairman Vineet Mittal confirmed to ET that the three lenders have started the loan disbursement for a 1.35 GW hybrid renewable energy projects and 800 MW of solar capacity in Gujarat and Maharashtra. These projects will begin commercial output starting March 2027. "These are new projects which are coming up and which have ready power purchasing agreements (PPAs) signed," Mittal said. "This is all fresh funding for these projects, some of which will start in March 2027 and March 2028 in Gujarat and Maharashtra."

The projects are across four special purpose vehicles (SPVs), with a total renewable energy portfolio of 2.15 GW. That includes 1.35 MW of hybrid renewable energy capacity and 800 MW of solar capacity contracted with Maharashtra State Electricity Distribution (MSEDCL) and Gujarat Urja Vikas Nigam (GUVNL).

Mittal said the aggregate tenure of the loans is 21.5 years. He declined to give the pricing of the loans.

"All these four SPVs are 100% subsidiaries of the group. They have received the finest pricing possible for this term loan. The three lenders are part of the loan as we speak today," he said. "It is possible that these lenders downsell the loan to a wider section of banks and financial institutions in the next few months."

ET could not ascertain the demarcation of the loan among the three current lenders. SBI, Canara and REC did not respond to mailed queries seeking comment.