SynopsisAccording to two sources familiar with the matter, the discussions have reached an advanced stage, and the loan is expected to be sanctioned soon.AgenciesACME Solar is in advanced discussions with lenders, including REC, PFC, State Bank of India and banks from the Middle East, to secure debt amounting to ₹4,000 crore to fund the green ammonia and green hydrogen projects in Tamil Nadu, India and Oman.According to two sources familiar with the matter, the discussions have reached an advanced stage, and the loan is expected to be sanctioned soon.”Lenders are appraising the project to evaluate the risk profile and gain confidence in the concepts of green hydrogen and green ammonia,” one bank source said. “Green hydrogen and green ammonia are new concepts and lenders will get confidence when they balance out the risk.” Presently, lenders are charging interest rates ranging from 8.5% to 8.75% for loans in the renewable energy sector.A spokesperson for ACME did not respond to a requesfor comment.The project will be implemented in phases, with the initial requirement estimated at ₹4,000 crore. “If a large lender takes the entire exposure, they may subsequently sell a portion of it,” the source said. The loan will be utilised to finance the projects in Tamil Nadu and Oman, with the repayment period aligned with the project’s duration.The Tamil Nadu project encompasses the establishment of a 5,000 MW solar PV plant, a 1.5 GW electrolyzer, and a 1.1 million tonne ammonia synthesis loop. ACME Solar has signed a land agreement to establish the green ammonia and green hydrogen facility in Oman, with plans for a $3.5 billion investment.In an interview with ET earlier this year, Rajat Seksaria, CEO of ACME Group, said that the pre-construction work for the Oman project has already commenced, and full-scale construction of the first project is scheduled to begin by April 2024.ACME Solar is actively developing projects in Tamil Nadu and Odisha and has secured an agreement inKrnataka as well. The company is currently in the process of acquiring land in Tamil Nadu and aims to commence construction on 2-3 projects by the end of March.Currently, ACME has solar power projects across 12 states and capex invested and committed at nearly $8 billion. In the past, ACME has undertaken transactions with Actis, Petronas, NIIF, Renew, BAML, Brookfield, Piramal, APG and Allianz, among others. Since 2020, ACME has diversified into green hydrogen and green ammonia. In 2021, ACME commissioned the world’s first green hydrogen and green ammonia plant in Bikaner, Rajasthan, according to the company’s website. Don’t miss out on ET Prime stories! Get your daily dose of business updates on WhatsApp. click here!Friday, 23 Jun, 2023Experience Your Economic Times Newspaper, The Digital Way!Read Complete Print Edition »Front PagePure PoliticsET MarketsSmart InvestingMorePM Meets GE, Micron CEOs Ahead of Investment PlansPrime Minister Narendra Modi on Wednesday helda eries of meetings with top US chief executives including with General Electric CEO Lawrence Culp Jr ahead of the company’s announcement on Thursday to make jet engines in India. No Change in Rates Seen but RBI Flags likely Food InflationPositive real interest rates obviate the need for further monetary policy tightening to restrain inflation, but the likelihood of a surge in farm product prices in the second half of the year could delay the cycle of rate easing, minutes of the early-June review of the central bank’s Monetary Policy Committee (MPC) showed.Woes Pile Up: Three Key Directors and Auditor Deloitte Quit Byju’sThree members of the board at Byju’s, as well as official auditor Deloitte, have resigned, according to several people in the know, in a significant addition to the mounting troubles at the edtech major. Read More News ontamil naduInterest ratestate bank of indiarenewpetronasACME Solarstate bank of indiarec(Catch all the Bsinss News, Breaking News Events and Latest News Updates on The Economic Times.)Download The Economic Times News App to get Daily Market Updates & Live Business News….moreless
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