Khaba Renewable and ENGIE India secure $102 million loan to boost clean power projects

Khaba Renewable and two ENGIE India entities have closed a $102 million loan that will fund the construction of new solar and wind projects across the country. The financing was arranged by a consortium of Indian banks and supported by the International Finance Corporation (IFC).

Loan details

The loan is split into three tranches, each tied to specific project milestones. The firms will use the funds to buy land, order equipment and pay for early construction work. The agreement also sets out reporting requirements that will let the lenders track progress and ensure the money is spent on eligible renewable assets.

• Tranche 1: $40 million to start solar farms in Rajasthan and Gujarat.
• Tranche 2: $35 million for wind farms in Tamil Nadu and Karnataka.
• Tranche 3: $27 million for grid‑connection work and operational start‑up.

The loan carries a fixed interest rate and a ten‑year repayment schedule, with a five‑year grace period before principal payments begin.

Implications for the renewable sector

The financing shows how Indian banks are beginning to use green loans to support the country's clean‑energy push. It also shows the growing confidence of international investors in Indian renewable developers. By securing a sizeable loan, Khaba Renewable and ENGIE India can build more capacity without waiting for equity funding.

Industry analysts say the deal could help the firms grow their combined renewable portfolio by about 1.5 GW over the next three years. That would add roughly 3 million homes worth of clean electricity to the grid, reducing reliance on coal and cutting emissions.

Next steps

Both companies plan to start site work within the next month. Khaba Renewable will lookat the solar sites in Rajasthan first, while ENGIE India will focus on the wind farms in Tamil Nadu. The firms will also work with state utilities to secure power‑purchase agreements that will lock in revenue for the new plants.

Officials from the participating banks said they will monitor the projects closely and will release quarterly updates on how the loan is being used. The IFC will also provide technical assistance to help the developers meet international environmental standards.

Overall, the loan gives the two firms a solid financial base to build more clean‑energy projects, and it signals that the Indian market is attracting more green financing as the country works toward its 2030 climate goals.