CERC Clears Security Interest for Fatehgarh IV Project
ECONOMY & POLICY

CERC Clears Security Interest for Fatehgarh IV Project

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.

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.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code