Axis Bank.
JSA Advises Axis Bank on Financing Four Solar Power Projects Across India: Mumbai – JSA Advocates & Solicitors has successfully advised Axis Bank Limited on the financing of four major solar power projects across India, marking a significant step in the country’s renewable energy sector. The projects, with a total capacity of 180 MW, are located in Rajasthan, Karnataka, and Madhya Pradesh, showcasing a strategic expansion of solar energy infrastructure across multiple states.
The solar power projects are being developed by Gentari Renewables Finnsurya Energy Private Limited, a leading player in the renewable energy space. The four projects are as follows:
70 MW (AC) at Bhadla Solar Park Phase II, Jodhpur, Rajasthan.
2 × 50 MW (AC) at Pavagada Solar Park, Tumkur, Karnataka.
5 MW (AC) at Bhilwara, Rajasthan.
10 MW (AC) at Kapeli, Ujjain, Madhya Pradesh.
Adv. Karan Mitroo, JSA.
JSA’s advisory team worked closely with Axis Bank to structure a flexible financing arrangement that accommodates the diverse nature of the projects, which span across different regions of India. The financing structure includes the refinancing of a term loan for capital expenditure and project development, alongside working capital facilities. Provisions for letters of credit and bank guarantees were also incorporated into the deal, ensuring a comprehensive approach to managing financial risks associated with the large-scale solar ventures.
Given the involvement of a Singapore-based shareholder, the financing structure required a nuanced approach to regulatory compliance and tailored shareholder undertakings. To safeguard the lender’s interests, a comprehensive security package was implemented. This included the assignment of project receivables, hypothecation of assets, escrow arrangements, and lender step-in rights, all of which were designed to mitigate potential risks throughout the project lifecycle.
Adv. Purvi Dabbiru, JSA.
The legal and regulatory complexity of the transaction required careful negotiation and drafting of financing documents. JSA’s team, led by Partner Karan Mitroo, provided end-to-end legal support, ensuring that all aspects of the transaction were addressed. The firm’s expertise was instrumental in structuring the financing to suit the project-specific cash flow dynamics while also ensuring compliance with regulatory requirements, both domestically and internationally.
The core team from JSA included Purvi Dabbiru (Partner), Surbhi Jain (Principal Associate), Riddhi Sri (Associate), Shantanu Awasthi (Associate), Harshil Kakkar (Associate), and Supriya Saxena (Paralegal), all of whom contributed to the drafting, negotiation, and review of the financing documents.
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This transaction is a part of Axis Bank’s ongoing commitment to financing renewable energy projects in India, underscoring the growing role of solar power in the country’s energy mix. With India setting ambitious targets for renewable energy generation, financing solutions such as these are essential to accelerate the growth of the solar sector, which is critical to the country’s sustainability goals.
The success of this financing deal highlights the increasing importance of strategic partnerships between financial institutions, developers, and legal advisors in facilitating large-scale renewable energy projects. It also demonstrates the ability of firms like JSA to navigate complex regulatory frameworks while providing innovative legal solutions to support India’s transition towards cleaner, more sustainable energy.
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