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Renewables - Greenfield Project
We finance all type of Power Generation Projects based on Renewable Energy (RE) Sources i.e Solar, Wind, Biomass, Small Hydro etc. We sanction loans as a sole lender or as a co-lender in consortium with or without the status of lead financer.
Types of Schemes Financed
| Technology | Minimum Size (MW) | Sole Funding Limits** | Consortium Funding Limits** | |
| IR-1 to IR-4 | IR-5 | |||
| Solar Project | 5 |
| Maximum debt Rs. 500 Cr. | Restricted to 50% of project cost without any restriction on overall cost and size of the project |
| Wind Project | ||||
| Small Hydro Project |
| Maximum debt Rs. 100 Cr. | ||
| Biomass Project |
| Maximum debt Rs. 50 Cr. | ||
**Funding limits are only for Private sector borrowers.
For interest rates, click here.
Loan Tenor
Moratorium Period:
The moratorium period for principal repayment may be up to twelve (12) months after the Commercial Operation Date (COD).
Repayment Period:
The repayment period after moratorium shall therefore be as follows:
| Repayment Period Project | Repayment Period |
| Solar |
|
| Wind | |
| Municipal solid waste/residual derived fuel/Biomass |
|
| Small Hydro Projects |
May be extended based on merit but not exceeding 25 years subject to availability of PPA. |
| Other Technologies |
|
| REC may take economic life from any of the following:: a. As provided under CERC/SERC guidelines or b. As suggested by Lenders Independent Engineer (LIE)/PMA c. As decided by REC based on the location of the project, technology of the project and operational & maintenance cost of the project. | |
Major Categories of borrowers:
- State Sector Power Utilities/SEBs,
- Central Sector,
- Joint Sector and
- Private Sector Companies/Independent Power Producers (IPPs).
Fees Applicable:
A. Private Sector Borrowers
Processing Fees*-
(%age of REC loan amount)
|
| Solar and Wind | Other |
| a. Under Construction projects – REC is neither lead nor sole lender | 0.35% | 0.40% |
| b. All type of funding of commissioned projects (incl. lead/Sole lending) | ||
| c. Short Term loan to Private sector | ||
| Under Construction projects -REC is sole FI | 0.50% | 0.60% |
| Under Construction projects -REC is lead FI | 0.60% | 0.75% |
| Total Minimum Fee | Rs. 25 Lakh | Rs. 50 Lakh |
Time line for payment of Fees:-
| Tranche | Amount | Timeline |
| T1 | 10% of Transaction fee with floor of Rs. 5 lakh & cap of Rs. 25 lakh | Before start of Appraisal |
| T2 | 10% of Transaction Fee | Before issue of sanction letter |
| T3 | Remaining Fee | Before documentation. |
B. State Sector Borrowers
As per REC's prevailing policy for state sector borrowers.
For further information, please contact:
| Mr. Saurabh Rastogi REC World Headquarters, Plot No. I-4, Sector 29, Tele.- +91 124-4441300
Mr. Alok Singh REC World Headquarters, Renewables Department Email Id-renewables[at]recindia[dot]com |
