Serentica Renewables to raise ₹5,000 cr debt

Move to raise debt from local lenders after ECB route turns harder

- Pavan Burugula & Mihir Mishra

Serentica Renewables, a renewable power company promoted by Sterlite Power, is planning to raise ₹5,000 crore debt from a clutch of domestic lenders, two people aware of the development said. The company will use the money to build hybrid solar and wind power projects in Karnataka, Rajasthan and Maharashtra, with commissioning expected to start in 2024-25.

This amount will be over and above the ₹5,600 crore that Serentica Renewables raised from Rural Electrification Corp. (REC) and Power Finance Corp. (PFC) recently, the people cited above said on condition of anonymity.

Serentica initially planned an external commercial borrowing (ECB) to raise the capital. However, the company has been facing challenges in raising the foreign debt due to concerns over its links to Anil Agarwal-led Vedanta Resources Plc.