SBI funds solar power projects for seven firms

State Bank of India ( SBI) on Monday signed an agreement with seven companies for funding solar power energy projects. The seven companies include Adani Group, JSW Energy, Hinduja Renewables, Tata Renewables Energy, Azure Power, Cleantech Solar and Hero Solar Energy.

The bank has funded 43 projects rooftop solar power projects, amounting to Rs 2,317 crore with the aggregate capacity of 475 mw, by availing line of credit from World Bank. SBI has availed $625 million from World Bank.

Rajnish Kumar, SBI chairman, said, "The advantage of giving loans to solar power projects is there is no fuel supply risk unlike other power projects. Secondly, it helps in protecting mother Earth."

He said the bank would lend to "those companies that are commercially viable and have the credential for solar (projects)". The bank has outstanding loan of Rs 12,000 crore to solar energy projects and bad loans are negligible in this sector, he added.