Rajnish Kumar, SBI Chairman (Photo: PTI) Rajnish Kumar, SBI Chairman (Photo: PTI)

State Bank of India (SBI) on Monday announced credit facilities amounting to Rs 2,317 crore with aggregate capacity of 575 MW to corporates towards financing grid connected rooftop solar projects.

“Under this arrangement, signed last year, the World Bank will provide dollar funding and based on that, we will provide rupee funding to corporates,” SBI chairman Rajnish Kumar said. SBI has availed a line of credit of $625 million from World Bank for on-lending to viable grid connected rooftop solar projects undertaken by PV developers, aggregators and end-users, for installation of rooftop solar systems in commercial, institutional and industrial buildings. Implementation of the programme by SBI will support the installation of around 800 MW of rooftop solar capacity.

SBI’s renewable energy loan portfolio stands at Rs 12,000 crore. “With the World Bank funded capacity development programme, SBI is making efforts to expand and incentivise the market for rooftop solar power by way low cost financing. Financing is being provided to those with sound technical capacity, relevant experience, and creditworthiness, meeting SBI standards,” Kumar said.

SBI has so far sanctioned 43 projects with aggregate credit facilities of Rs 2,766 crore under the programme. This would add 695 MW of solar rooftop capacity to the grid, and is a significant step towards meeting the government of India’s target of 40 GW of solar rooftop installations.

The sanction letters were handed over to JSW Energy, Hinduja Renewables, Tata Renewable Energy, Adani Group, Azure Power, Cleantech Solar and Hero Solar Energy by SBI Chairman Rajnish Kumar at a conference organised by SBI on solar projects for large corporates.

“With this programme, SBI aims to contribute to the development of the burgeoning rooftop solar market in the country which until now was being held back by lack of targeted financing,” SBI said.

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