Avaada Energy closes Rs 315 Cr financing for Captive Solar Project in Karnataka

Avaada Energy, a leading player in the renewable energy sector and an arm of Avaada Group,  announced that it has successfully closed financing of about Rs 315 crore from Aseem Infrastructure Finance Limited (AIFL), an IFC (Infrastructure Finance Company) established with an aim of playing 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, the company said.

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."

According to an official statement, Avaada Energy aims to achieve 11 GWp capacity by 2026.

Avaada Group is an energy transition company, involved in Renewable Energy Generation, Solar PV Manufacturing, development of Green Fuels including Green Ammonia, Green Methanol and Sustainable Aviation Fuel, and providing Energy Storage Solutions.