The company says the debt requirement will come from a consortium of domestic lenders, which comprise the State Bank of India and the Export Bank of India. SBI Capital Markets, meanwhile, will act as sole financial advisor and arranger.
In a statement, Tata commented, "The company completed pre-disbursement conditions under the financing agreements for availing interim disbursement and received the first loan disbursement on December 8, 2011."
Project investment is said to total around Rs.365 crore (approximately US$6.8 million; 5.2 million) and is being funded through a debt-equity mix of 70:30. "The project financing comprises equity of Rs110 crore and rupee term loans of Rs255 crore," continued the company.
The photovoltaic project, when complete, will occupy an area of 100 acres and will employ crystalline silicon technology. A power purchase agreement has been signed with Gujarat Urja Vikas Nigam. The project is expected to start generating power this December.
The company could not be reached for further comment.