Tata Power Renewable Energy, a subsidiary of Tata Power, signed a Memorandum of Understanding (MoU) with Bank of Baroda to facilitate financing solutions for MSME and Commercial and Industrial customers opting for solar energy.
In an exchange filing, Tata Power stated that under this partnership, Bank of Baroda will provide loans to the MSMEs who want to purchase solar equipment and projects of up to 10 MW capacity through Tata Power Renewable Energy or its authorised channel partners.
Tata Power said that the initiative by the company and the bank is aimed at helping MSME and C&I businesses to adopt renewable energy with greater ease and reduce operating costs.
Interest rate on solar projects
Tata Power said that under the partnership, the companies that opt for solar power projects from Tata Power Renewable Energy will get collateral-free loans of up to Rs 10 crore under the Credit Guarantee Fund Trust for Micro and Small Enterprises coverage. The rate of interest on these loans will start from 7.75 per cent.
Furthermore, Tata Power said, under the scheme, the MSMEs will get flexible repayment tenure of up to 120 months, pan-India financing coverage, reduced margin requirements, and concessional processing fees.
Tata Power’s renewable energy push
Tata Power is driving its renewable energy capacity under the subsidiary Tata Power Renewable Energy Ltd. As per the company, it has reached a total renewable capacity of 5.6 GW. Rooftop solar installation remains the key component in the company’s renewable energy push.
According to Tata Power, its renewable energy arm has successfully completed over 2.49 lakh rooftop solar installations, reaching a cumulative capacity of 3.6 GWp. The company is catering to customers across various sectors such as hospitality, automotive, aviation, education, chemical, steel, and textiles.