Avaada Energy has secured Rs 1,190 crore loan for a new solar project in Gujarat from State Bank of India.

The financing, sanctioned and disbursed as a 20-year project loan facility, will support the development of a 400 MWp utility-scale solar PV power project in the Surendra Nagar district of Gujarat.

The 20-year project loan facility will support the project's development and procurement by Gujarat Urja Vikas Nigam (GUVNL), which is engaged in the bulk purchase and sale of electricity. This marks Avaada's first venture in developing a greenfield project under an existing special purpose vehicle (SPV).

This strategic arrangement will enable the company to optimise its capital structure, simplify ownership structure of its project subsidiaries, demonstrating Avaada's approach to expanding its renewable asset base. The SPV already possesses an operational project.