The Government of India has set an ambitious target of installation of Grid Connected The Government of India has set an ambitious target of installation of Grid Connected Rooftop Solar Photovoltaic (GC-RSPV) projects with capacity aggregating 40 GW out of total incremental target of 175 GW of Renewable Energy capacity by 2022. With a view to giving a fillip to this segment, SBI has availed a line of credit from World Bank specifically, for financing GC-RSPV projects across the country through its identified branches (refer Annexure I). A Customized financial product has been developed by SBI and benchmark parameters for the purpose drawn up. The benchmark parameters and terms & conditions under the program are as under:
Sole Proprietorship, Partnership Firm/ including LLP and Company/ Special Purpose Vehicle (SPV)/ NBFC Borrower or their parent company/ sponsor should have:
(i) at least 1 year experience/ past track record in power sector, and
(ii) CRA rating of SB-10 & better and/or ECR of Investment grade
Upto 75% of project cost.
Six months Marginal Cost of Funds Based Lending Rate (MCLR) plus spread in the range of 120 bps to 190 bps based on risk rating of the customer
Loans extended to MSMEs will be linked to external benchmark rate as per Bank’s extant guidelines plus spread in the range of 120 bps to 190 bps based on risk rating of the customer
Avg Gross DSCR at P90 : 1.20
6.2:1 for initial 3 years.
Below 6 from 4th year onwards
Up to 12 months post Date of Commencement of Commercial Operations (DCCO).
The Bank may seek additional security (Collateral) if FACR falls below 1.10
Minimum Level :Equivalent to 6 months principal and interest.
Mandatory compliance of World Bank guidelines on procurement and Environment, Health, Safety and Social (EHSS) related to rooftop solar projects.
All Corporate Account Group Branches (Project debt component above Rs 500 cr.), Commercial Clients Group Branches (Project debt component above Rs 50 cr. and up to Rs 500 cr.), and SME Branches (loan up to Rs 50 cr.)
i) Term Loan
ii) Need based Working Capital against receivables
iii) Need based NFB (LC/BG) facility
1.10 (minimum) throughout the tenure of the loan
Minimum – 1.5
Door to Door tenor up to 15 years
Exclusive first charge on all fixed assets, movable assets, and current assets, lease hold rights, cash flows and project related accounts & rights therein, current as well as future relating to the project (T & C applicable).
Assignment of Project documents.
In case of Sole Proprietorship /Partnership Firm/ Company, personal guarantee of proprietor/ partners/ directors.
In case of Special Purpose Vehicles (SPVs)/ Associates/ Subsidiaries, Corporate Guarantee of sponsor can be further explored.
The required project agreements (including PPA)/ clearances/ approvals (as applicable) should be in place, before disbursement of 1st tranche for each individual loan under the overall sanctioned credit facility.
Note: Benchmarks parameters and terms and conditions as mentioned above are indicative and not exhaustive. The Bank always reserves the right to modify/ change as and when deemed necessary.