Solar Energy Corporation of India Limited (SECI), a leading Navratna government corporation under the Ministry of New and Renewable Energy, has embarked on an official initiative to attract major finance to its latest renewable energy project. As a strategic step in strengthening its green energy portfolio, SECI has issued a request for proposals (RFP) to scheduled commercial banks and other established financial institutions.
A term loan of ₹660 crores is being requested by the organization in order to enable the development of a large 200 MW solar PV power plant at Dhar, Madhya Pradesh. This funding proposal also highlights how SECI is focused on expanding solar presence in India and achieving high clean energy goals.
Financial structure and strategic allocation
The Dhar solar project is organized under the Scheme Phase-II of the Central Public Sector Undertaking (CPSU) scheme, which is a government program that contributes to domestic manufacturing and the production of clean energy through public sector organizations. This 200 MW installation is not a one-off project but part of a larger capacity allocation of 1200 MW under the management of SECI.
Such a wider allocation also covers major renewable energy initiatives in other states, such as Ramagiri in Andhra Pradesh and Radhanesda in Gujarat. The Dhar project in particular continued to gain formal impetus after its acceptance by the Board of Directors of SECI at its 99th meeting in October 2025, signifying the shift in planning to actual financial acquisition.
The overall estimated cost of the realization of the Dhar solar project stands at ₹944.78 crores. Nevertheless, the net value of the project cost is practically brought down to ₹515.34 crores of the total cost in consideration of vital financial underpinnings. Such subsidies are viability gap funding (VGF) and special solar subsidies of the Ministry of New and Renewable Energy, amounting to ₹129.44 crores.
Using a debt-equity ratio of 80:20, SECI has predetermined an efficient financing plan for the remainder of the balance. Although this is the main target, the organization has the flexibility of changing the ratio to 70:30 according to the existing conditions and the lending terms provided by the lenders. With the prevailing 80:20 model, the required debt is approximately ₹652.27 crores, which SECI aims to fulfil with the recommended 660 crore term loan. The equity portion will be financed completely by the internal sources of the organization.
Stability and long-term viability
One of the characteristics of the project is stability and long-term feasibility offered with its power offtake arrangement. The 200 MW power plant in Dhar will provide electricity to the Madhya Pradesh Power Management Company Limited (MPPMCL). This supply is regulated through a Power Purchase Agreement (PPA) that sets a fixed tariff of ₹2.45 per kWh.
The contract will have a lifespan of 25 years, making the project have a clear visibility of its future source of revenue as long as the project is in operation. This is a long-term contract that not only provides a stable flow of clean energy to the state of Madhya Pradesh but also gives the financial stability that will help in attracting competitive rates of lending by the financial institutions.
Conclusion
The application by SECI of the ₹660 crore loan to fund the Dhar solar project is an important action in the implementation of the Indian renewable energy roadmap. SECI is proving its way with a strong utility-scale solar development model through a mix of government subsidies, internal equity, and commercial debt. With the total awarded capacity of the organization steadily increasing beyond the 76.5 GW mark, such a project as it is in Dhar becomes a necessary block to a sustainable energy future.
This successful funding acquisition will allow the project of the 200 MW plant to move forward on time, and this project will ultimately help to make the power grid in the area carbon-free and establish SECI as a leader in the transition to renewable energy all over the world.
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