Tata Power has received Rs 450 crore in sustainable trade finance from Japan’s MUFG | Daily News Byte

This credit has been extended for solar projects under TP Kirnali Limited (TPKL). Established in 2020, TPKL is a 100% owned subsidiary of Tata Power Renewable Energy Limited (TPREL), a clean energy platform.

“It is the first sustainable trade finance facility offered by MUFG in India and TPKL will use the funds towards building renewable energy capacity,” Tata Power said in a statement, adding that the partnership would open up further opportunities for Tata Power to raise green capital. Continue to increase clean energy portfolio and contribute to India’s net zero goal.

MUFG extended this financing to finance the procurement of two solar power projects of TPKL – a 100 MW project in Parthur, Maharashtra and a 120MW project in Mesanka, Gujarat – under paper trade finance.

Sanjeev Churiwala, CFO, Tata Power, said, “This partnership will open up opportunities to explore more green financing as we expand our clean energy portfolio and contribute significantly to India’s net zero goals.”

Tata Power plans to be net carbon neutral by 2045 and MUFG has announced a commitment to achieve net carbon emissions in its financial accounts by 2050 and its own operations by 2030.

Belinda Han, MUFG’s Head of Asia Pacific Banking Transactions, said: “As more companies include ESG goals as part of their KPIs, MUFG is committed to supporting our clients towards achieving these goals.” Tata Power’s shares were trading at Rs 201.75, down 3.40% on the BSE, Friday. Benchmark Sensex fell 1.13%.