Avaada Energy Secures Rs 315 Crore for Karnataka Solar Project

New Delhi, May 29 (PTI) Avaada Group's arm Avaada Energy on Wednesday said it has secured Rs 315 crore financing from Aseem Infrastructure Finance for a captive solar project in Karnataka.

Aseem Infrastructure Finance Ltd (AIFL) is an IFC (Infrastructure Finance Company) established with the aim of playing a transformative role in the growth of Indian infrastructure debt financing, according to a company statement.

Avaada Energy, a leading player in the renewable energy sector, has secured financing for its solar PV power project, which is being developed under a long-term captive Power Purchase Agreement (PPA) with the Karnataka Cooperative Milk Producers' Federation Ltd (KMF), the statement said.

The project is located in the Kalaburagi district of Karnataka. KMF, the apex body for the dairy cooperative movement in Karnataka, is 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.

Vineet Mittal, Chairman of Avaada Group, said, "This successful financial closure of Rs 315 crore demonstrates our long-standing relationship with Aseem Infrastructure Finance."

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, the company said.

This project is expected to be completed during Q3 FY25.

This initiative aligns with Avaada Group's broader sustainability strategy and commitment, playing a pivotal role in driving national self-reliance and fostering a greener future.