Adani Energy Solutions Secures Funding from Japanese Banks for Major Transmission Project
Adani Energy Solutions Ltd. (AESL), India’s largest private energy services company, has secured long-term funding from a group of Japanese banks. The money will fund its flagship High-Voltage Direct Current (HVDC) transmission project. This “green corridor” is designed to improve the flow of renewable energy across Northern India.
The project is essential for moving renewable power from solar-rich areas in Rajasthan to India’s national grid. This will help meet the country’s growing demand for clean energy.
Building India’s Green Energy Backbone
The 950-kilometer corridor will connect Bhadla in Rajasthan to Fatehpur in Uttar Pradesh. It is a high-capacity network capable of moving 6,000 MW of power. Scheduled to open by 2029, this link will become a vital path for green energy. It will help integrate large-scale renewables and make the power grid more stable for India’s busiest cities and industrial hubs.
This project is part of the Adani Group’s clean energy platform. Rajasthan is a major hub for Adani Green Energy Limited (AGEL), which already provides power to Adani Electricity Mumbai Limited (AEML). Currently, over 40% of the electricity supplied to Mumbai by AEML comes from renewable sources, making it one of the world’s leading cities for sustainable power.
Strong International Support and Technology
The financing was led by Japanese banks MUFG Bank Ltd. and Sumitomo Mitsui Banking Corporation (SMBC). This investment shows that international partners remain confident in India’s renewable energy infrastructure.
The project will use advanced technology from Hitachi, working alongside Bharat Heavy Electricals Limited (BHEL). This partnership uses India’s local manufacturing strengths while benefiting from Japan’s leadership in transmission technology.
The growing financial bond between India and Japan is also visible in AESL’s recent “BBB+” credit rating from the Japanese agency JCR. This stable rating matches India’s national rating, showing trust in both the country’s policies and AESL’s financial health.
Leadership Comments on the Partnership
Kandarp Patel, CEO of AESL, said: “This project is a major step in building a green transmission backbone for India. The continued support from our Japanese partners shows the depth of our partnership and our shared goal of a sustainable energy future. AESL is focused on building strong, future-ready infrastructure to speed up India’s energy transition.”
Commitment to Sustainable Growth
The funding was raised under AESL’s sustainable debt framework. It follows international “Equator Principles,” allowing lenders to classify the money as a Green Loan. This highlights AESL’s commitment to responsible growth and global environmental and social standards.
For this transaction, Latham & Watkins and Saraf & Partners served as legal counsel for the borrower. Linklaters and Cyril Amarchand Mangaldas advised the lenders.
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