KPI Green Energy has secured ₹979 crore in financing from Canara Bank for the development of a 150 MW wind power project in Gujarat, marking a significant step in expanding its renewable energy portfolio.
The money includes a ₹931 crore term loan and a ₹48 crore bank guarantee facility. This will help the project move forward as part of the company’s Independent Power Producer (IPP) segment.
Project Details and Financial Structure
The wind project is being built in the Bharuch and Bhavnagar districts of Gujarat. It is backed by 25-year Power Purchase Agreements (PPAs) with Gujarat Urja Vikas Nigam Limited (GUVNL), which guarantees stable revenue.
The total cost of the project is expected to be ₹1,241.68 crore, with a 75:25 debt-equity ratio. The loan that was approved will be the biggest part of the debt.
The financing facility lasts for 20 years and 1 month, which includes a 1-year and 4-month implementation period and a 1-year moratorium. This means that the project will have long-term financial support.
Company Statement
Commenting on the development, Dr. Faruk Patel, Chairman and Managing Director of KPI Green Energy, said, “This sanction from Canara Bank represents another important milestone in KPI Green Energy’s growth journey.”
He went on to say, “The continued support from major public sector banks shows that they have a lot of faith in our ability to carry out our plans and our long-term vision for the renewable energy sector.”
Patel also said that the funding will help speed up growth, saying, “This facility will help speed up the growth of our renewable energy portfolio, strengthen stable annuity revenues, and create lasting value for all stakeholders.”
Growth Outlook
The project is part of KPI Green Energy’s larger plan to increase its renewable capacity and help the KP Group reach its goal of 10 GW capacity by 2030.
Once it is up and running, the wind project is expected to improve the company’s IPP portfolio and help India switch to cleaner and more sustainable energy sources.
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