Tata Power taps MUFG to fund 220-MW solar portfolio in India

India’s Tata Power Co Ltd (NSE:TATAPOWER) has clinched a sustainable trade finance agreement with Japan’s MUFG Bank Ltd allowing it to back the construction of two solar projects totalling 220 MW.

The deal concerns financing worth INR 4.5 billion (USD 54.4m/EUR 51m), Tata Power announced on Friday. The fresh funds will be allocated for a 100-MW photovoltaic (PV) project in Parthur, Maharashtra state, and a 120-MW scheme in Mesanka, Gujarat.

Both projects are being developed by TP Kirnali Ltd, a unit of Tata Power’s clean energy platform Tata Power Renewable Energy Limited (TPREL).

The funding arrangement marks MUFG’s first sustainable trade finance facility in India. Commenting on the partnership, Tata Power’s chief financial officer Sanjeev Churiwala said: "The association will open up opportunities to explore raising more green finance as we expand our clean energy portfolio and significantly contribute towards India's net zero targets."

Mumbai-based Tata Power aims to become carbon net zero by 2045. The power generation group currently has 14 GW of installed capacity, including more than 7 GW of solar parks and close to 1 GW of wind farms, according to its website.

MUFG has committed to achieving net zero emissions in its finance portfolio by 2050 and its own operations by 2030.

(INR 10 = USD 0.121/EUR 0.113)

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