Avaada Group has finalized a ₹12,800 crore financing deal with SBI, Canara Bank, and REC for 2.15 GW of green energy projects. This capital will support the construction of hybrid and solar capacity in Gujarat and Maharashtra. Investors may track the project execution timeline, as commercial operations are scheduled to begin between March 2027 and March 2028.
Avaada Group has announced a major financing milestone, securing a term loan package worth approximately ₹12,800 crore. The funding is provided by a consortium led by the State Bank of India, Canara Bank, and the Rural Electrification Corporation. This financing is structured to support the development of 2.15 GW of new renewable energy capacity, making it one of the largest debt-facility deals in the Indian green energy sector this year.
Project Deployment and Capacity
The secured funds are specifically designated for four special purpose vehicles, all of which are wholly-owned subsidiaries of the group. The capacity includes 1.35 GW of hybrid renewable energy and 800 MW of solar power. According to the company, these projects have already secured power purchasing agreements with the Maharashtra State Electricity Distribution Company and the Gujarat Urja Vikas Nigam. Securing these long-term contracts is a standard industry practice to ensure revenue visibility before capital is deployed for large-scale infrastructure.
Financial Structure and Future Timelines
The loan facility comes with a tenure of 21.5 years. By utilizing long-term debt, the company aims to align the repayment schedule with the expected operational life and cash flow generation of the solar and hybrid plants. While specific interest rate details remain private, the company has indicated that the debt structure allows for flexibility, including the potential for lenders to sell parts of the loan to other financial institutions in the future. The phased commissioning of these projects is targeted to begin in March 2027, with additional capacity expected to come online by March 2028.
For investors monitoring the renewable energy sector, the key focus remains on execution risk and the ability of developers to meet commissioning deadlines without significant cost overruns. Large-scale renewable projects often face challenges related to land acquisition, transmission infrastructure readiness, and changes in equipment costs. While these projects have secured off-take agreements, maintaining profit margins will depend on the company's ability to keep construction costs within budget and manage its debt-servicing obligations over the next two decades. Monitoring the progress of these specific projects toward their 2027 and 2028 operational targets will be the primary indicator of the group's project management efficiency.