Tata Power stated in a stock exchange filing that under the deal, BoB will provide loans to MSMEs to purchase solar power equipment and set up projects of up to 10 MW through Tata Power Renewable Energy or its authorised channel partners.
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Tata Power Renewable Energy, a subsidiary of Tata Power, officially announced here on Friday that it has signed a Memorandum of Understanding (MoU) with Bank of Baroda (BoB) to finance solar power projects for MSME customers.
Tata Power stated in a stock exchange filing that under the deal, BoB will provide loans to MSMEs to purchase solar power equipment and set up projects of up to 10 MW through Tata Power Renewable Energy or its authorised channel partners.
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Tata Power said that the initiative is aimed at helping MSMEs adopt renewable energy with greater ease and reduce operating costs.
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The company stated that under the deal, companies opting 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 (CGTMSE) coverage. The rate of interest on these loans will start at 7.75 per cent.
Under the scheme, MSMEs will get flexible repayment tenure of up to 120 months, pan-India financing coverage, reduced margin requirements, and concessional processing fees.
Tata Power is driving its renewable energy capacity under the subsidiary Tata Power Renewable Energy Ltd. The company has reached a total renewable capacity of 5.6 GW at a time when rooftop solar installation remains a key component in its renewable energy push.
According to the Tata Power statement, the company’s renewable energy arm has successfully completed over 2.49 lakh rooftop solar installations in India so far.
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