IREDA sanctions loan of Rs 2,128 crore to GMR Power for Smart Meter project in UP

GMR Power and Urban Infra Ltd has secured approval from the Indian Renewable Energy Development Agency Limited to part finance the project to install and maintain 75.69 lakh smart meters across various zones in Uttar Pradesh.

The project, estimated to cost Rs 3,467.02 crore, is being executed in consortium with Bosch Global Software Technologies Private Ltd (Bosch) as the technical partner, as per the stock exchange filing.

It covers key zones, including Varanasi, Azamgarh, Prayagraj, and Mirzapur under Purvanchal Vidyut Vitran Nigam Limited (PUVNL) and the Agra and Aligarh zones under Dakshinanchal Vidyut Vitran Nigam Limited.

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GPUIL bagged the contract in September 2023 and to part-finance this large-scale project, GSEDPL secured an aggregate loan of Rs 2,128 crore from the Indian Renewable Energy Development Agency Ltd (IREDA).

The loan will be disbursed in tranches to three Special Purpose Vehicles (SPVs) — GMR Agra Smart Meters Ltd, GMR Kashi Smart Meters Ltd, and GMR Triveni Smart Meters Ltd — created specifically for the project. As part of the financing arrangements, GPUIL has extended corporate guarantees of Rs 440 crore each to the SPVs until the Commercial Operation Date (COD).

The company plans to extend further guarantees for the remaining amount once it secures shareholder approval for the related-party transactions. The project is being funded through a mix of debt, equity, and internal accruals.

Shares of GMR Power and Urban Infra were trading 0.99% lower at Rs 127.46 on the BSE.

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