Mahindra Susten Gets 1,448 Crore Loan for Clean Energy Growth
Wednesday, 11 December 2024, 15:19 IST
Mahindra Susten Private Limited wholly owned subsidiary, Martial Solren, has successfully raised a term loan of 1,448 crore rupees from HDFC Bank and Axis Bank. The funds will be used to develop 560 MWp solar power projects in Gujarat and Rajasthan, and further the company's efforts to increase renewable energy capacity in India.
These projects are being implemented under long-term Power Purchase Agreements (PPAs) with Gujarat Urja Vikas Nigam Limited(GUVNL) and Rajasthan Urja Vikas Nigam Limited(RUVNL). The loan agreement was concluded on highly favorable terms, underlining the confidence in the company's project execution and financial strategy.
Once operational, the solar plants are expected to generate approximately 9 lakh megawatt-hours of electricity annually, offsetting around 8.19 lakh tonnes of carbon dioxide equivalent emissions. This clean energy output is estimated to meet the electricity needs of about 1.8 lakh households each year, aligning with India’s renewable energy goals.
Deepak Thakur, Managing Director and CEO of Mahindra Susten, described the financial closure as a critical milestone for the company. He highlighted that the funding reinforces Mahindra Susten’s strategy of expanding its portfolio while supporting India’s energy transition. Thakur noted that the closure follows the onboarding of a strategic investor in 2022, further emphasising the company’s commitment to sustainable energy development.
Rakesh Singh, Group Head at HDFC Bank, expressed satisfaction in partnering with Mahindra Susten on the project, underscoring the importance of supporting climate-conscious energy solutions. Similarly, Rajiv Anand, Deputy Managing Director at Axis Bank, stated that the partnership aligns with the bank’s goal of fostering socio-economic and environmental sustainability through responsible financing.
The successful financing highlights Mahindra Susten’s role as a key player in India’s renewable energy sector, with the potential to make a significant impact on the country’s clean energy landscape.
These projects are being implemented under long-term Power Purchase Agreements (PPAs) with Gujarat Urja Vikas Nigam Limited(GUVNL) and Rajasthan Urja Vikas Nigam Limited(RUVNL). The loan agreement was concluded on highly favorable terms, underlining the confidence in the company's project execution and financial strategy.
Once operational, the solar plants are expected to generate approximately 9 lakh megawatt-hours of electricity annually, offsetting around 8.19 lakh tonnes of carbon dioxide equivalent emissions. This clean energy output is estimated to meet the electricity needs of about 1.8 lakh households each year, aligning with India’s renewable energy goals.
Deepak Thakur, Managing Director and CEO of Mahindra Susten, described the financial closure as a critical milestone for the company. He highlighted that the funding reinforces Mahindra Susten’s strategy of expanding its portfolio while supporting India’s energy transition. Thakur noted that the closure follows the onboarding of a strategic investor in 2022, further emphasising the company’s commitment to sustainable energy development.
Rakesh Singh, Group Head at HDFC Bank, expressed satisfaction in partnering with Mahindra Susten on the project, underscoring the importance of supporting climate-conscious energy solutions. Similarly, Rajiv Anand, Deputy Managing Director at Axis Bank, stated that the partnership aligns with the bank’s goal of fostering socio-economic and environmental sustainability through responsible financing.
The successful financing highlights Mahindra Susten’s role as a key player in India’s renewable energy sector, with the potential to make a significant impact on the country’s clean energy landscape.
