Indian power company Tata Power is looking to borrow up to $1 billion for clean energy projects, potentially making it the largest local currency loan in India this year.
Tata Power, part of the Tata Group, is negotiating with banks including State Bank of India, IndusInd Bank, Axis Bank, and ICICI Bank for this loan, according to sources who requested anonymity due to the private nature of the talks.
Earlier this year, the biggest local currency loan in India was $365 million, raised by Assam Bio Refinery Pvt. If Tata Power secures around $1 billion, it would surpass this record.
The loan will help fund Tata Power’s $1.6 billion investment announced in August for clean energy projects like pumped hydro storage, the sources said.
India aims to almost triple its green power capacity by the end of the decade, with companies like Tata Power, Adani Green Energy, and Reliance Industries leading these efforts. Tata Power plans to nearly quadruple its renewable energy capacity by 2027.
The loan could be arranged as a bilateral or clubbed facility. Tata Power expects to finalize agreements with banks in the next three to six months, with funds being released in stages as projects develop. The loan might be priced based on local benchmarks like the Reserve Bank of India’s repo rate or treasury bills. Negotiations are still ongoing, and details may change. Tata Power and the mentioned banks did not respond to requests for comments.
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