Tata Power Company, a subsidiary of Tata Group, is seeking to secure up to $1 billion for clean energy projects, potentially marking the largest local currency loan in India this year.

Tata Power is currently in discussions with several lenders, including State Bank of India, IndusInd Bank, Axis Bank, and ICICI Bank, according to sources who requested anonymity due to the private nature of the information.

The current record for India's largest local currency loan this year is held by Assam Bio Refinery Pvt., which secured $365 million in February. If Tata Power's borrowing reaches the $1 billion mark, it would surpass this record.

The funds will support Tata Power's $1.6 billion investment, announced in August, aimed at developing clean energy projects such as pumped hydro storage, the sources said.

India's goal to nearly triple its green power capacity by the end of the decade has prompted major firms like Tata Power, Adani Green Energy Ltd., and Reliance Industries Ltd. to intensify their efforts in the renewable energy sector. Tata Power plans to nearly quadruple its renewable generation capacity by 2027.