The State Bank of India (SBI) has signed an agreement with seven companies for funding solar power energy following a line of credit from World Bank. The seven companies include Adani Group, JSW Energy, Hinduja Renewables, Tata Renewables Energy, Azure Power. Cleantech Solar and Hero Solar Energy.
The bank has funded 43 projects rooftop solar power projects amounting Rs 2317 crore with the aggregate capacity of 475 MW by availing a line of credit from World Bank. SBI has availed $625 mn from World Bank.
The chairman of the bank said the following,
"The advantage of giving loan to solar power projects is there is no fuel supply risk unlike other power projects. Secondly it helps in protecting mother Earth. The bank would lend to those companies that commercially viable and have the credential for solar. The bank has outstanding loan of Rs 12000 crore to solar energy projects and bad loans are negligible in this sector."
The bank will give loan at 15 basis points over marginal cost of lending rates - the benchmark rate of the bank. The bank can draw the loan within five months but are expected to draw the line of credit within 18 months. The bank has tied with World Bank for on-lending to viable Grid Connected Rooftop Solar Projects undertaken by developers or aggregators and end-users, for installation of rooftop solar systems on the rooftops of commercial, institutional and industrial buildings.