Tata Power Renewable Energy, a subsidiary of Tata Power, has signed a Memorandum of Understanding (MoU) with Bank of Baroda (BoB) to finance solar power projects for Micro, Small, and Medium Enterprises (MSMEs). The partnership aims to encourage MSMEs to adopt renewable energy and reduce their operating costs. Under the agreement, BoB will provide loans to MSMEs to purchase solar power equipment and set up projects of up to 10 MW through Tata Power Renewable Energy or its authorized channel partners.
The loans will be collateral-free, with amounts of up to Rs 10 crore available under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) coverage. The interest rate on these loans will start at 7.75 percent, with flexible repayment tenure of up to 120 months. Additionally, MSMEs will benefit from pan-India financing coverage, reduced margin requirements, and concessional processing fees.
Tata Power is aggressively expanding its renewable energy capacity, with a total capacity of 5.6 GW. The company’s renewable energy arm, Tata Power Renewable Energy Ltd, has completed over 2.49 lakh rooftop solar installations in India. This partnership with BoB is expected to further boost the adoption of renewable energy among MSMEs, which will not only reduce their operating costs but also contribute to India’s sustainable energy goals.
The initiative is a significant step forward in promoting the use of renewable energy among MSMEs, which are a crucial sector in the Indian economy. By providing easy access to financing and making solar power more affordable, Tata Power and BoB are helping to create a more sustainable future for these businesses. The partnership is also expected to help India achieve its renewable energy targets, which are critical for reducing the country’s carbon footprint and mitigating the impact of climate change.
Overall, the MoU between Tata Power Renewable Energy and Bank of Baroda is a positive development for the renewable energy sector in India, and it is expected to have a significant impact on the adoption of solar power among MSMEs. With its focus on sustainability and reducing operating costs, this initiative is a win-win for both the businesses and the environment.