KPI Green Energy Ltd secures a sanction of INR 3,200 crore from SBI

KPI Green Energy Limited secures a sanction of INR 3,200 crore from State Bank of India (PF&SBU), comprising both fund-based and non-fund based facilities, to part-finance the development of its 250 MW Solar Project and 370 MW Hybrid Project in Gujarat, together aggregating over 1 GWp of the Company's Independent Power Producer (IPP) portfolio.

Project Details

The sanctioned facilities will support two strategically significant renewable projects:

1. 250 MW (AC) / 350 MWp (DC) Solar Power Project
2. 370 MW Hybrid Power Project, comprising 557 MWp Solar portion and 124.20 MW Wind portion

Both projects are secured by 25-year long-term Power Purchase Agreements (PPAs) with Gujarat Urja Vikas Nigam Limited (GUVNL) and are being developed in the Bharuch and Surendranagar districts of Gujarat.

Strategic Importance & Financial Structure

This milestone sanction highlights the confidence of India's largest public sector bank in KPI Green Energy's technical expertise, execution track record, and financial strength. The projects will be funded with a 75:25 debt-equity ratio, with proceeds earmarked for project cost financing, reimbursement of incurred expenditure, and related development expenses.

Dr. Faruk Patel, Chairman & Managing Director, KPI Green Energy Limited, stated: "This landmark sanction from the State Bank of India is a strong validation of KPI Green Energy's capabilities and long-term vision. Financing is a critical enabler of large-scale infrastructure, and this partnership empowers us to accelerate capacity addition under India's renewable transition. With over 1 GWp of new capacity being developed, we will significantly expand our operational portfolio, strengthen annuity income streams, and create long term value for all stakeholders. We remain fully committed to delivering these projects ahead of stipulated timelines and setting new benchmarks in execution excellence."

Projected Impact

- Upon commissioning, these projects will make a substantial contribution to KP Group's 10 GW target by 2030.

- Revenue recognition will begin through long-term PPAs, strengthening recurring revenue streams and profitability.

- The projects will eliminate over 1.5 million tonnes of CO₂ emissions annually-an environmental benefit equivalent to planting more than 65 million trees every year-reinforcing our commitment to a greener, more sustainable future.

This achievement further reinforces KPI Green Energy's position as one of India's fastest-growing renewable energy companies and underlines its commitment to powering the nation's clean energy transition.

Source : Equity Bulls

Keywords

KPIGreenEnergy Funding SBI