Avaada Energy on Wednesday said that it has successfully closed financing of around ₹315 crore (about $38 million) from Aseem Infrastructure Finance (AIFL). Avaada Energy is part of the Avaada Group.

AIFL is an IFC (Infrastructure Finance Company) established with an aim of playing a transformative role in the growth of Indian infrastructure debt financing. Avaada Energy secured the financing for its solar PV power project being developed under a long-term captive Power Purchase Agreement (PPA) with Karnataka Cooperative Milk Producers’ Federation (KMF).

The project is located in the Kalaburagi district of Karnataka. KMF is the apex body for the dairy co-operative movement in Karnataka. This financing from AIFL, sanctioned as an about 21-year project loan facility has been obtained on very competitive terms.

Avaada Group Chairman Vineet Mittal said “This successful financial closure of ₹315 crore demonstrates our long-standing relationship with Aseem Infrastructure Finance. This renewed partnership highlights the trust and confidence of leading financial institutions like Aseem have in Avaada’s capabilities.

The funding will facilitate the development of this marquee captive project for a cooperative entity, illustrating the pervasive impact of energy transition across the Indian economy.” This project is expected to be completed during Q3 FY25. It aligns with Avaada Group’s broader sustainability strategy and commitment, playing a pivotal role in driving national self-reliance and a greener future, he added.