Avaada Energy has got Rs 315 Cr investment from Assem Infrastructure Finance Limited (AIFL) for a captive solar project in Karnataka.
Avaada Energy, part of the Indian renewable energy industry, announced last week that it is getting funding of approximately INR 315 crore, equivalent to around USD 38 million. This investment comes from Aseem Infrastructure Finance Limited (AIFL) as a 21-year loan.
The project is expected to be completed by the third quarter of the next fiscal year.
The funding is for its solar PV power project in Kalaburagi district of Karnataka. Currently, it is under development as per a captive Power Purchase Agreement (PPA) with Karnataka Cooperative Milk Producers’ Federation Limited (KMF).
In an official statement, Avaada stated in their release that this loan was obtained on very competitive terms and reflects its strategy to reduce project risks and strong financing capability.
Furthermore, Avaada has stated that their partner KMF is the primary organisation overseeing the dairy cooperative movement in Karnataka. KMF holds an A+ (Stable) rating from the Investment Information and Credit Rating Agency of India (ICRA).
Mr. Vineet Mittal, Chairman of Avaada Group, commented on the development, that the successful financial closure showcases their enduring partnership with Aseem Infrastructure Finance. He emphasised that this collaboration reflects the trust and confidence major financial institutions like Aseem have in Avaada’s capabilities.
Mittal noted that the funding will support the development of a significant captive project for a cooperative entity, highlighting the widespread impact of the energy transition across the Indian economy. He mentioned that the project is expected to be completed soon, by the next financial year. As per his statement, this initiative aligns with Avaada Group’s sustainability strategy and commitment, that is contributing to national self-reliance and a greener future.
Avaada Energy is a subsidiary of the Avaada Group. Its activities include renewable energy generation, solar PV manufacturing, development of green fuels like green ammonia and methanol, sustainable aviation fuel, and offering energy storage solutions. Its renewable power generation arm aims to achieve 11 GWp capacity by 2026.
