Tata Power on Friday said it has received a Rs 450 crore "sustainable trade finance facility" from MUFG Bank of Japan to fund its solar projects in India.

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This credit facility was extended for two solar projects under TP Kirnali Limited (TPKL), the company said in a statement.

TPKL is a 100 percent subsidiary of Tata Power Renewable Energy Limited (TPREL).

According to the statement, it is the first sustainable trade finance facility offered by MUFG in India and TPKL will utilise the funds towards generating renewable energy capacity.

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MUFG has extended the financing to fund TPKL’s two solar power projects -– a 100 MW renewable project in Parthur, Maharashtra and a 120 MW green energy project in Mesanka, Gujarat.

Sanjeev Churiwala, CFO, Tata Power, said his company’s association with MUFG will open up opportunities to explore raising more green finance as Tata Power expands clean energy portfolio to contribute towards India’s net zero targets.

Shashank Joshi, Deputy CEO of MUFG India, said this deal marks another milestone in establishing MUFG as a preferred ESG (environmental, social, and governance) financer in the region.

"Industries such as the power sector have traditionally been highly carbon intensive, but there is a growing recognition of a need to change. This deal underpins MUFG and Tata Power’s joint commitment to renewable energy and ensures a strong sustainable source of green power to the country," he said.

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First Published:Dec 23, 2022 2:16 PM IST