NEW DELHI: India’s largest public sector lender State Bank of IndiaBSE -3.72 % (SBI) has invested an undisclosed amount from its Neev Fund in Indian solar player SunSource Energy, for developing solar project assets in states with low levels of capital investment, the company said in a statement on Friday.
SunSource Energy, a solar project developer and EPC services provider, currently has 200 MWs of solar projects in India and abroad. The company targets to reach 1.5 GW of capacity by 2025, the statement said.
Founded in 2010, the company’s turnover has been rising at a compounded growth rate of nearly 200 percent year-on-year.
“Our focus on environmentally sustainable solar energy solutions is fully aligned with Neev's focus on under-invested states. We look forward to deploying this capital into solar assets in these states, and significantly contribute to the sustainable development of these states,” said Adarsh Das, CEO and Co-Founder of SunSource Energy.
The Neev Fund, an initiative of SBI and UK’s department for International development (DFID), is an infrastructure private equity fund which aims to invest in low income or developing states in India, with a focus on infrastructure sub-sectors such as renewable energy, agricultural supply chain, among others.
Gavin McGillivray, Head, UK DFID India said, “We are pleased that Neev Fund is the first investor in SunSource. The investment will help the company grow in India’s under-invested states."
This is Neev fund’s fourth investment, and Varsha Purandare, MD, and CEO of SBICAPS said, “Neev Fund has been a highly successful partnership between SBI and the DFID of UK, having made a meaningful impact in India’s low-income states and a model fund for future funds by SBI/SBICAPS.”
The funding will help SunSource develop projects in Uttar Pradesh, Rajasthan, Madhya Pradesh, Bihar, Orissa, Jharkhand, West Bengal and Chhatisgarh, outside of their operations in other cities.
“Collaborations like these help SunSource reduce our clients’ costs and deliver effective solutions,” said Kushagra Nandan, President, and Co-Founder of SunSource Energy.
Economic Laws Practice, a leading Indian law firm, was the key legal advisor, and Venturebook Capital Advisors was the financial advisor, on the transaction.
View all SMART GRID Bulletins click here