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Tata Power has secured ₹4.5 billion (~US$54.3 million) in trade finance from Japan-based Mitsubishi UFJ Financial Group (MUFG) for two solar projects.
The funds will be used for a 100 MW solar power project in Parthur, Maharashtra, and a 120 MW solar power project in Mesanka, Gujarat.
Both projects will be implemented by TP Kirnali (TPKL), a subsidiary of Tata Power Renewable Energy Limited, the clean energy arm of Tata Power.
The funding marks MUFG’s first sustainable trade finance facility in India. It will also boost Tata Power’s contribution towards achieving Net India targets.
Belinda Han, MUFG’s Head of Banking Transactions Asia Pacific said, “This facility is designed to support our client’s sustainability agenda and drive the greening of global supply chains and we are excited to launch it in India.”
Tata Power CFO Sanjeev Churiwala said: “We are committed to transforming our business to enable sustainable energy through clean energy sources. The association with MUFG will open up opportunities to explore more green finance upgrades as we expand our clean energy portfolio and contribute significantly to India’s net-zero goal.”
MUFG India Deputy CEO Shashank Joshi commented, “Industries such as the energy sector are traditionally high carbon, but there is a growing awareness of change. This agreement confirms MUFG and Tata Power’s joint commitment to the energy sector. Reproduce and ensure a sustainable source of green energy for the country.”
MUFG has pledged to achieve net zero emissions in its financial accounts by 2050 and its own operations by the end of the current decade, while the credit facility will help Tata Power achieve the same by 2045.
MUFG extended five-year financing of $163 million for Azure Power’s 300 MW solar project in Rajasthan.
Earlier this month, MUFG and Sumitomo Mitsui Banking Corporation acted as lead lenders for a 27.95 billion yen (~$205.31 million) project loan for Adani Green Energy subsidiary to help pay off its debt.
Gourav is a staff journalist with Mercom India with over six years of experience in various roles with NewsX, The New Indian Express, IBTimes India, and USA, The Republic, and Analytics India magazine. Gourav has a Masters in Journalism from Jain University, Bengaluru. More articles from Gourav Mishra[ad_2]
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