Adani Energy Solutions Ltd. (AESL), India’s biggest private energy services company, has received long-term financing from a consortium of Japanese banks for its flagship high-voltage direct current (HVDC) transmission project, a green evacuation corridor designed to boost the flow of renewable power throughout northern India.
The project will be one of the key factors in the evacuation of renewable energy in solar-rich areas of Rajasthan and delivering it into the national grid of India that will help to meet the growing national need for clean energy in the country.
The 950-kilometre corridor will have a capacity of 6,000 MW of evacuation capacity, was configured as a high-capacity ±800 kV HVDC network, and will link Bhadla in Rajasthan to Fatehpur in Uttar Pradesh.
The link is planned to be commissioned by 2029, and will be a key green transmission artery- allowing large-scale integration of renewable generation, and enhancing grid stability of some of the most energy-intensive urban and industrial centres in India.
The asset belongs to the integrated platform of clean energy of the Adani Group. Rajasthan is still one of the major generation areas of Adani Green Energy Limited (AGEL), and its plants already provide clean energy to the Adani Electricity Mumbai Limited (AEML) subsidiary of AESL.
AEML has already incorporated over 40 percent of renewable energy into its supply mix, which makes Mumbai one of the largest cities in the world with significant sustainable power penetration.
The funding, spearheaded by Japanese financial partners MUFG Bank Ltd. and Sumitomo Mitsui Banking Corporation (SMBC), underscores continued foreign trust in the development of renewable infrastructure in India.
The project is also backed by the state-of-the-art HVDC technology of the Japanese company Hitachi that is being supplied in partnership with Bharat Heavy Electricals Limited (BHEL), taking advantage of the domestic manufacturing ecosystem of India.
These collaborations are a measure of Japan as a leader in the critical transmission technologies and India as a country that is pushing its local manufacturing as part of its Make-in-India push.
The improving India-Japan financial and industrial relationship can also be manifested in the recent BBB+ (Stable) credit rating of Japanese rating agency JCR of AESL, on the same footing as the sovereign rating of India, indicating equal trust in the policy structure of the country and the balance sheet of AESL.
Kandarp Patel, CEO, AESL, said, “This project marks a defining step in building India’s green transmission backbone. The continued support from our Japanese partners—including leading banks and Hitachi—reflects the depth of the India–Japan partnership and our shared commitment to enabling a sustainable energy future. AESL remains focused on developing resilient, future-ready transmission infrastructure to accelerate India’s energy transition.”
The financing has been structured under the sustainable debt model of AESL, which has been aligned with the Equator Principles, and which allows the involved lenders to categorize the facility as a Green Loan and support the overall responsibility of AESL towards responsible expansion and international ESG standards.
Latham & Watkins and Saraf & Partners represented the borrower’s counsel, while Linklaters and Cyril Amarchand Mangaldas advised the lenders on the transaction.
