- Tata Power to build 2 solar projects with the $4.5 billion financing received from MUFG
- One plant would be of 100 MW in Maharashtra, while the other of 120 MW will be in Gujarat
India based integrated power company Tata Power announced that it has secured $4.5 billion financing from Japan-based Mitsubishi UFJ Financial Group (MUFG). This is MUFG’s first sustainable trade finance facility in India.
The money will be used for two solar projects – a 100 MW solar project in Parthur, Maharashtra; and another 120 MW solar project in Mesanka, Gujarat. TP Kirnali, a wholly owned subsidiary of Tata Power Renewable Energy Limited, will be executing both the projects. This initiative is aligned towards Tata Power’s endeavour towards achieving India’s zero-carbon goals.
Speaking about this development, CFO of Tata Power Sanjeev Churiwala said, “We are committed to transitioning our business to make sustainable power available through clean energy sources. The association with MUFG will open opportunities to explore raising more green finance as we expand our clean energy portfolio and significantly contribute towards India’s net-zero targets.”
MUFG Head of Transaction Banking Belinda Han also commented, “This facility is designed to support out clients’ sustainability agenda and catalyze the greening of global supply chains and we are excited to launch this in India.”
Tata Power announced in October 2022 that it targets to have a renewable energy portfolio of 10 GW in the state of Rajasthan within next 5 years (see Tata Power To Invest In 10 GW RE In Rajasthan).
MUFG is a bank holding and financial services company based in Chiyoda, Tokyo, Japan, which is one of the Mitsubishi Group’s largest ventures with Mitsubishi Corporation and Mitsubishi Heavy Industries.