The Tamilnadu Industrial Investment Corporation Ltd
(A Government Of Tamil Nadu Undertaking)
Funding Success...

Solar Power Project Scheme

 

Objective For establishment of new solar photovoltaic power plants set up by existing/ new units / commercial establishments.
Purpose

To establish solar photovoltaic power plants both grid connected and off‑grid solar power plant, either on roof top or over land for captive consumption of entire power generated by the solar power plant by existing units. To establish 1 MW and above capacity solar photovoltaic power plants over land, for full or part sale of power to TANGEDCO after consumption of power for own requirement, by existing/new units.

Financial assistance can be considered for

  • Site development cost like leveling, approach road formation etc.
  • Civil works like fencing, construction of stores/warehouse, substation, control room etc.
  • Purchase & installation of Plant & machinery like solar PV modules, trackers, power conditioning system including inverters, switch yard equipments, transformers, internal cabling and earthing, control and instrumentation panels etc. on turnkey basis or otherwise.
  • Land cost is not eligible for loan purpose.

 

Eligibility

i.For setting up solar photovoltaic power plants set up by existing units for captive consumption:

  •  Existing Assisted and Non-assisted units.
  • The  existing unit should be in operation for the past 3 financial years.
  • The existing unit should have earned at least cash profit for the last 3 financial years.
  • The net worth of the existing unit should be positive.
  • The units assisted by the corporation shall be in standard assets category for   the last 3 financial years.
  • Existing Units which are having loan with other Banks/FIs should be in standard     category with respective institutions for the last 3 financial years.
  • Existing units set up with own funds are also eligible to avail assistance. Such units should have earned net profit for the last 3 years and their net worth should be positive.
  • The existing unit should not come under the purview of sick unit definition.
  • The units should have sufficient cash generation including income from proposed power plant to meet our repayment commitment for the proposed loan and DSCR should not be less than 1.5:1.00.

 

ii. For units which are going to sell entire/part of power generated to TNEB:

  • The size of plant should be 1 MW and above.
  • The units / commercial establishment should be existing or new?
  • The units should obtain site suitability and feasibility/ load flow study report from TANGEDCO for power evacuation/ grid availability.
  • The units should have entered into power purchase agreement with TANGEDCO for purchase of power at preferential rate.
Site Selection Site suitability report from Govt. Agency/ Govt. approved agency shall be obtained for this purpose.
Photovaltaic Panels / Equipments Only new plant& machinery shall be considered as per International Standards. The supplier shall be experienced EPC contractors/reputed manufacturers with proven good track record. Performance guarantee and warranty for solar plants for at least 10 years shall be insisted. For captive consumption or sale of power to TNEB projects.
Promoters contribution

Existing assisted/non-assisted units which are in  }

standard category for the last 3 years                    }  :   25% (minimum)

New Units/Existing units not coming under above category }  :   35% (minimum)

Debt Equity Ratio Not exceeding 2.00 : 1.00 (Overall)
Repayment Period Upto 9 years including a moratorium period of upto 1 year.
Collateral Security

Good, easily marketable immovable property in the form of land/ land and building only at not less than 35% of term loan in case of existing assisted and non-assisted units which are in standard category for not less than 3 years, and 50% of term loan for all other cases shall be obtained. For Board cases collateral to be decided on case to case basis. The proposed solar power project site shall not be taken as collateral. Agricultural land cannot be taken as collateral.

Personal guarantee of the borrower and also owner of collateral property shall be obtained.

Sanctioning Authority

BSC has no power even if the proposed loan is within its sanctioning limit and these proposals shall be placed before RLSC.

For other cases, loans will be sanctioned by the respective sanctioning authority.

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