Tata Power to raise $1 bn for clean energy projects

Tata Power plans to raise $1 billion for clean energy projects, India’s largest local currency loan this year, in talks with the State Bank of India, IndusInd Bank, Axis Bank, and ICICI Bank.

Tata Power Co is planning to raise as much as $1 billion equivalent for clean energy projects, in what could be the country’s largest local currency loan this year.

The unit of Tata Group, one of India’s largest conglomerates, is in talks with lenders including State Bank of India, IndusInd Bank, Axis Bank, and ICICI Bank for the loan, people familiar with the matter said, asking not to be identified as the information is private.

India’s largest local currency loan so far this year was Assam Bio-Refinery Pvt’s deal of $365 million in February. If Tata Power’s planned borrowing finalises with a size anywhere near $1 billion, it would take that title.

The proceeds of the loan will be used to fund the company’s investment of $1.6 billion announced in August to develop some clean energy projects known as pumped hydro storage.

India aims to nearly triple its green power capacity by the end of the decade and firms including Tata Power, Adani Green Energy Ltd, and Reliance Industries Ltd are ramping up such efforts. Tata Power is targeting a near fourfold growth in its renewable generation capacity by 2027.