CERC Clears Security Interest for Fatehgarh IV Project

19 Mar 2025 CW Team

The security interest covers both movable and immovable assets, project accounts, documents, and the assignment of its transmission license. The move aims to secure obligations under financing agreements tied to implementing a major transmission project evacuating power from renewable energy zones in Rajasthan, with a total capacity of 20 GW under Phase III-Part A1.

Financing Details Fatehgarh IV Transmission Limited received financial assistance from Axis Bank Limited, amounting to $37 million. This includes a $21 million rupee term loan and a $16 million letter of credit facility.

The financing arrangements were formalized through a Security Trustee Agreement and a Facility Agreement signed on March 27, 2024. The company agreed to create a first-ranking charge over its assets, including equipment, machinery, project documents, bank accounts, receivables, and land. A pledge over 51% of the company’s shares held by Apraava Energy was also established.

Project Progress and Financial Structure As of July 31, 2024, Fatehgarh IV Transmission Limited received $18.5 million from various sources, including equity contributions, shareholder loans, and letter of credit payments issued by Axis Bank. The funds have been used for purchasing transformers, reactors, conductors, substation land, and other essential infrastructure.

The total estimated project cost is $42 million, structured as $21 million in debt and $21 million in equity.

Approval with Conditions CERC approved the security interest creation but imposed conditions to ensure operational reliability. The transmission license cannot be transferred without prior approval, and if the lender enforces its rights due to a default, the new nominee must obtain regulatory clearance and demonstrate the ability to manage the transmission assets effectively.

Additionally, a signed copy of the mortgage deed must be submitted after execution. The commission’s decision supports the smooth execution of the project while safeguarding the interests of lenders and ensuring the reliability of India's growing renewable energy infrastructure.

The Central Electricity Regulatory Commission (CERC) has granted Fatehgarh IV Transmission Limited, a subsidiary of Apraava Energy Private Limited, approval to create a security interest over its assets in favor of Axis Trustee Services Limited. The security interest covers both movable and immovable assets, project accounts, documents, and the assignment of its transmission license. The move aims to secure obligations under financing agreements tied to implementing a major transmission project evacuating power from renewable energy zones in Rajasthan, with a total capacity of 20 GW under Phase III-Part A1. Financing Details Fatehgarh IV Transmission Limited received financial assistance from Axis Bank Limited, amounting to $37 million. This includes a $21 million rupee term loan and a $16 million letter of credit facility. The financing arrangements were formalized through a Security Trustee Agreement and a Facility Agreement signed on March 27, 2024. The company agreed to create a first-ranking charge over its assets, including equipment, machinery, project documents, bank accounts, receivables, and land. A pledge over 51% of the company’s shares held by Apraava Energy was also established. Project Progress and Financial Structure As of July 31, 2024, Fatehgarh IV Transmission Limited received $18.5 million from various sources, including equity contributions, shareholder loans, and letter of credit payments issued by Axis Bank. The funds have been used for purchasing transformers, reactors, conductors, substation land, and other essential infrastructure. The total estimated project cost is $42 million, structured as $21 million in debt and $21 million in equity. Approval with Conditions CERC approved the security interest creation but imposed conditions to ensure operational reliability. The transmission license cannot be transferred without prior approval, and if the lender enforces its rights due to a default, the new nominee must obtain regulatory clearance and demonstrate the ability to manage the transmission assets effectively. Additionally, a signed copy of the mortgage deed must be submitted after execution. The commission’s decision supports the smooth execution of the project while safeguarding the interests of lenders and ensuring the reliability of India's growing renewable energy infrastructure.

Infrastructure Urban

31 Jul 2026

SCLR Extension Nears Completion Linking BKC With Signal-Free Route

The Santacruz-Chembur Link Road (SCLR) extension towards Bandra-Kurla Complex (BKC) via the Mumbai University campus has entered its final stage, bringing motorists closer to a direct, signal-free connection between the Western Express Highway and the city’s commercial district. The elevated connector is being built as an arm from the SCLR alignment and will link the western suburbs with BKC without surface signals. The link is designed to reduce journey times for commuters travelling from the western suburbs to BKC and to improve access to eastern Mumbai. By carrying through traffic above s..

Infrastructure Transport

31 Jul 2026

Raiganj MP Seeks Bengal Only Highway Link To Siliguri

Raiganj Member of Parliament Kartik Chandra Paul met Union Minister for Road Transport and Highways Nitin Gadkari in New Delhi to press for a new stretch of national highway in North Dinajpur district. He urged approval for a Bengal-to-Bengal link that would connect National Highways 12 and 27 to allow vehicles bound for Siliguri to avoid the current route through Kishanganj in neighbouring Bihar. He also submitted a proposed alignment of the new road to the ministry for consideration. At present vehicles from Raiganj travel along NH-12 and join NH-27 at Purnia More in Dalkhola, a route that p..

Infrastructure Transport

31 Jul 2026

Airport Kilambakkam Metro Line To Be Extended To Chengalpattu

Chennai Metro Rail (CMRL) has invited tenders for two detailed project reports that would extend its rail network to Chengalpattu in the south and extend Corridor-5 to Wimco Nagar in the north as part of a second wave of expansion beyond the operator's corridors under construction. The move signals an acceleration of planning for suburban links and interchange nodes. The larger of the two studies covers a roughly 27km extension from the planned Kilambakkam metro station to Chengalpattu under Corridor-1, Phase I. CMRL floated the tender at an estimated cost of Rs 21.6 mn. The proposed line woul..