In a significant development in the renewable energy sector, Avaada Energy, a subsidiary of the Avaada Group, has successfully secured ₹315 crore (approximately $38 million) in financing from Aseem Infrastructure Finance Limited (AIFL) for its solar photovoltaic (PV) power project in Karnataka’s Kalaburagi district. This funding marks a pivotal milestone in Avaada Energy’s journey towards promoting sustainable energy solutions and contributing to India’s renewable energy goals.
The solar project, strategically located in Kalaburagi, is poised to supply power to the Karnataka Cooperative Milk Producers’ Federation Ltd (KMF), a leading entity in the dairy cooperative movement in the state. The project’s long-term captive Power Purchase Agreement (PPA) with KMF underscores its significance in fostering energy self-sufficiency and driving sustainable development within the region.
The 21-year project loan facility extended by AIFL reflects the confidence and trust in Avaada Energy’s robust project development strategy and financial acumen. Vineet Mittal, Chairman of the Avaada Group, expressed his satisfaction with the successful financial closure, emphasizing the enduring partnership between Avaada Energy and Aseem Infrastructure Finance.
Mittal underscored the broader implications of this financing arrangement, highlighting its role in advancing India’s infrastructure debt financing landscape and facilitating the transition towards renewable energy sources. He reiterated Avaada Energy’s commitment to sustainability and its pivotal role in driving national self-reliance while contributing to a greener future for the country.
With the project slated for completion by the third quarter of fiscal year 2025, Avaada Energy is poised to make significant strides towards achieving its sustainability objectives and promoting the adoption of clean energy solutions in Karnataka and beyond. This financing milestone reaffirms Avaada Energy’s position as a key player in India’s renewable energy landscape and underscores its dedication to driving positive change through innovative and sustainable energy initiatives.