KPI Green Energy announced that State Bank of India has approved a Rs 3,200 crore financing facility for its solar and hybrid independent power producer projects in Gujarat, totaling more than 1GWp.
Key Highlights
- KPI Green Energy secures ₹3,200 crore from SBI to develop 1 GWp solar and hybrid projects.
- Projects backed by 25-year PPAs with GUVNL, aiming to reduce 1.5 million tonnes CO₂ annually.
According to a company statement, the sanctioned facilities will support two strategically significant renewable projects: a 250 MW (AC)/350 MWp (DC) solar power project and a 370 MW hybrid power project, which will include 557 MWp solar and 124.20 MW wind.
The company received a Rs3,200-crore sanction from State Bank of India (PF&SBU), which included both fund-based and non-fund-based facilities, to partially fund the development of its 250MW solar project and 370MW hybrid project in Gujarat, which together account for more than 1 GWp of the company's Independent Power Producer (IPP) portfolio, according to the statement.
Both projects have 25-year long-term power purchase agreements (PPAs) with Gujarat Urja Vikas Nigam Ltd (GUVNL) and are being developed in Gujarat's Bharuch and Surendranagar districts.
The projects will be funded at a 75:25 debt-equity ratio, with proceeds set aside for project cost financing, reimbursement of incurred expenses, and related development costs.
"This landmark sanction from the State Bank of India is a strong validation of KPI Green Energy's capabilities and long-term vision," said Faruk Patel, KPI Green Energy Limited's Chairman and Managing Director.
"With over 1 GWp of new capacity under development, we will significantly expand our operational portfolio, strengthen annuity income streams, and create long-term value for all stakeholders," Patel said.
When completed, these projects will make a significant contribution to KP Group's 10 GW target for 2030. Revenue recognition will begin with long-term PPAs, which will strengthen recurring revenue streams and profitability.
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The projects will reduce carbon dioxide emissions by over 1.5 million tonnes per year, an environmental benefit equivalent to planting more than 65 million trees each year, reinforcing our commitment to a greener, more sustainable future.
Faruk G Patel founded KP Group in 1994, and it has since grown into a multifaceted conglomerate with a focus on renewable energy, infrastructure, and innovation.
