Bondada Engineering secures first major bank-funded term loan for BESS project

Bondada Engineering Limited has received sanction for a term loan from Canara Bank to finance the debt component of its Battery Energy Storage System (BESS) project with Tamil Nadu Green Energy Corporation Limited (TNGECL), the company announced in a regulatory filing.

The sanction marks the company’s entry into large-scale, bank-funded infrastructure financing and represents a strategic shift toward asset ownership and annuity-based revenue models.

The company is also eligible for Viability Gap Funding (VGF) totalling Rs 108 Crore under the project. The funding enhancement for BESS projects outlined in the recent Union Budget further underscores policy alignment with India’s renewable energy integration and grid stability goals.

Bondada Engineering stated that the financial closure reflects institutional confidence in its project execution capabilities and governance framework. The company reaffirmed its commitment to completing the project within scheduled timelines while expanding its renewable energy and energy storage portfolio through disciplined capital management.

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