Financial Products Long Term Loan

Long Term Loan - Renewables

We finance all type of Power Generation Projects based on Renewable Energy (RE) Sources i.e Solar, Wind, Biomass, Small Hydro etc. We sanction loans as a sole lender or as a co-lender in consortium with or without the status of lead financer.

Types of Schemes Financed

Technology

Minimum Size (MW)

Sole Funding Limits**

Consortium Funding Limits**

IR-1 to IR-4

IR-5

Solar  Project

5

  • Maximum debt Rs. 2000 Cr. (For IR-1 to IR-2)
  • Maximum debt Rs. 1500 Cr. (For IR-3)
  • Maximum debt Rs. 750 Cr. (For IR-4)

 Maximum debt Rs. 500 Cr.  

Restricted to 50% of project cost without any restriction on overall cost and size of the project

Wind Project

Small Hydro Project

  • Maximum debt Rs.200 Cr. (For IR-1 to IR-3)
  • Maximum debt Rs. 100 Cr. (For IR 4)  

Maximum debt Rs. 100 Cr.  

Biomass Project

  • Maximum debt Rs.100 Cr. (For IR-1 to IR-3)
  • Maximum debt Rs. 50 Cr. (For IR 4)  

Maximum debt Rs. 50 Cr.  

**Funding limits are only for Private sector borrowers.

For interest rates, click here.


Loan Tenor

Moratorium Period:

The moratorium period for principal repayment may be up to twelve (12) months after the Commercial Operation Date (COD).

Repayment Period:

The repayment period after moratorium shall therefore be as follows:

 Repayment Period Project

Repayment Period

Solar

  •  Normally 15 years or PPA tenure whichever is lower ; may be extended based on merit but not exceeding 80% of economic life or PPA whichever is lower

Wind

Municipal solid waste/residual derived fuel/Biomass

  •  Maximum 15 Years or PPA tenure whichever is lower

Small Hydro Projects

  • Normally 15 years or PPA tenure whichever is lower;

May be extended based on merit but not exceeding 25 years subject to availability of PPA.

Other Technologies

  • Maximum 15 years

REC may take economic life from any of the following::

a. As provided under CERC/SERC guidelines or

b. As suggested by Lenders Independent Engineer (LIE)/PMA

c. As decided by REC based on the location of the project, technology of the project and operational & maintenance cost of the project.

 

Major Categories of borrowers:

  • State Sector Power Utilities/SEBs, 
  • Central Sector, 
  • Joint Sector and 
  • Private Sector Companies/Independent Power Producers (IPPs).

Fees Applicable:

A.    Private Sector Borrowers

Processing Fees*-


                                                                                                         (%age of REC loan amount)

 

Solar and Wind

Other*

a. Under Construction projects – REC is neither lead nor sole lender

0.035%

0.04%

b. All type of funding of commissioned projects (incl. lead/Sole lending)

c. Short Term loan to Private sector

Under Construction projects -REC is sole FI

0.05%

0.06%

Under Construction projects -REC is lead FI

0.06%

0.075%

*Floor of Rs. 5 lakh & cap of Rs. 25 lakh is applicable on processing fee

B.    State Sector Borrowers

As per REC's prevailing policy for state sector borrowers.

 

For further information, please contact:

Mr. Kuldeep Rai
CGM (Renewable Energy)
Core 4, SCOPE Complex,
7, Lodi Road, New Delhi-110003
Tele.- 011-43091560, 011-24365815
 Email id – kuldeep.rai@recl.in

Mr. Vivek Agarwal
GM (Renewable Energy)
Core 4, SCOPE Complex,
7, Lodi Road, New Delhi-110003
Tele.-  +911143091654

Email Id-vivek.agarwal@recl.in

Renewables Department Email Id-renewables@recl.in

 

Website last updated at: 02/03/2021 - 12:15 PM
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