Avaada Energy Closes INR 315 Cr Financing for Captive Solar Project in Karnataka

Avaada Energy Closes INR 315 Cr Financing for Captive Solar Project in Karnataka

Mumbai,30th May 2024: Avaada Energy, a leading player in the renewable energy sector and an arm of Avaada Group is pleased to announce that it has successfully closed the financing of about INR 315 crore (USD 38 million) from Aseem Infrastructure Finance Limited (AIFL), an IFC (Infrastructure Finance Company) established to play a transformative role in the growth of Indian infrastructure debt financing.

The company has secured financing for its solar PV power project being developed under a long-term captive Power Purchase Agreement (PPA) with Karnataka Cooperative Milk Producers’ Federation Limited (KMF). The project is located in the Kalaburagi district of Karnataka. KMF is the apex body for the dairy co-operative movement in Karnataka, rated A+ (Stable) by ICRA.

This financing from AIFL, sanctioned as a 21-year project loan facility obtained on very competitive terms, demonstrates Avaada’s derisked project development strategy and strong project financing capability.

Commenting on the development, Mr. Vineet Mittal, Chairman of Avaada Group, said, “This successful financial closure of INR 315 crore demonstrates our long-standing relationship with Aseem Infrastructure Finance. This renewed partnership highlights the trust and confidence of leading financial institutions like Aseem have in Avaada’s capabilities. The funding will facilitate the development of this marquee captive project for a cooperative entity, illustrating the pervasive impact of energy transition across the Indian economy. This project is expected to be completed during Q3 FY25. This initiative aligns with Avaada Group’s broader sustainability strategy and commitment, playing a