Navratna PSU Solar Energy Corporation of India (SECI) has issued a Request for Proposal (RFP) to scheduled commercial banks and financial institutions to secure a ₹660 crore term loan. The capital is earmarked for the development of a 200 MW grid-connected, ground-mounted solar PV plant in Dhar, Madhya Pradesh. This financing move comes as SECI solidifies its role as the sole intermediary procurer for new renewable energy bids, a designation recently formalized by the Ministry of New and Renewable Energy (MNRE).
Financial Breakdown and Governance
The project, which received formal approval during SECI’s 99th Board Meeting in October 2025, carries a total estimated capital expenditure of ₹944.78 crore. The funding structure leverages significant government support under the CPSU Scheme Phase-II (Government Producer Scheme), including Viability Gap Funding (VGF) of ₹44.72 lakh per MW. This brings the total subsidy component to approximately ₹129.44 crore, resulting in a net project cost of ₹815.34 crore.
SECI intends to fund the equity portion through internal accruals, while the debt component will be covered by the proposed ₹660 crore loan. The facility will be secured via a first pari-passu charge on the project’s assets. Given SECI’s robust financial standing—evidenced by its AAA credit ratings from ICRA and CARE and its history of debenture oversubscription—the RFP is expected to draw significant interest from the domestic banking sector.
Loan Terms and Conditions
| Feature | Specification |
| Debt-Equity Ratio | 80:20 (flexible to 70:30) |
| Total Loan Tenor | 20 years |
| Moratorium Period | 2 years |
| Repayment Period | 18 years |
| Minimum Offering Amount | ₹150 crore per lender (in multiples of ₹10 crore) |
| Repayment Schedule | Principal (half-yearly) and Interest (monthly) |
| Drawing Window | Full disbursement within 2 years |
Project De-risking and Technical Integration
A key highlight for prospective lenders is the advanced state of project “de-risking.” SECI has already secured approximately 460 hectares of land across the villages of Gadi, Rajod, and Nawapada in Dhar. Furthermore, in-principle grid connectivity is established for power evacuation at the 220 kV level via the Madhya Pradesh Power Transmission Company’s (MPPTCL) 400/220 kV Badnawar substation.
Major contracts have also been finalized to ensure operational readiness:
- Balance of System (BoS): Awarded to M/s Amar Infrastructure Limited for ₹439.41 crore.
- Solar PV Modules: Awarded to FS India Solar Ventures for ₹474.1 crore.
The project is slated to achieve its Scheduled Commercial Operation Date (SCOD) on May 22, 2027.
Strategic Context and Portfolio Expansion
The Dhar project represents a massive leap in SECI’s owned-generation strategy. As of December 2025, SECI maintained an operational owned capacity of 123 MW; the addition of this 200 MW plant will trigger a nearly 160% increase in the corporation’s operational asset base.
This development is part of a broader strategic partnership with the Government of Madhya Pradesh. An MoU signed in February 2025 during the Global Investors Summit not only formalized this solar project but also included a 1,000 MWh Battery Storage Project in the state, signaling a move toward integrated generation-plus-storage infrastructure.
The energy generated will be supplied to the Madhya Pradesh Power Management Company Limited (MPPMCL) under a 25-year Power Purchase Agreement (PPA) at a competitive tariff of ₹2.45 per kWh.
Financial institutions must submit their loan proposals to SECI by the deadline of April 24, 2026.
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