Vikran Engineering Limited announced that its wholly owned subsidiary, NOPL Solar Projects Private Limited, has secured a rupee term loan facility of up to ₹2,941.19 crore from the Indian Renewable Energy Development Agency (IREDA). The funding is designated to part-finance the development of a major solar photovoltaic power project under the Mukhyamantri Saur Krushi Vahini Yojana 2.0 (MSKVY) Scheme in Maharashtra.

The loan supports the construction of a 969 MWac / 1,163 MWp solar power plant spread across 152 locations. The estimated total project cost stands at ₹4,201.70 crore. With this financing arrangement finalized, Vikran Engineering Limited has also confirmed that its EPC contract award from NOPL, valued at ₹3,517.98 crore, is now fully funded.

Financing Structure and Project Scope

The facility agreement was executed on October 9, 2026, and disclosed to stock exchanges on October 12, 2026. IREDA serves as the lender, while NOPL acts as the borrower. The balance of the project cost beyond the loan amount will be funded through promoter contribution and other sources as per the financing plan.

Impact on Parent Company

Vikran Engineering Limited clarified that the facility agreement does not directly impact its management or control. IREDA holds no rights to nominate directors to the board of the listed entity or participate in its management. However, the parent company intends to provide a corporate guarantee in favor of IREDA to secure NOPL’s obligations. This guarantee will be executed separately in accordance with the terms of the financing documents.

What the Numbers Show

The financial structure reveals a high leverage ratio for the project development phase. The debt component of ₹2,941.19 crore represents approximately 70% of the total estimated project cost of ₹4,201.70 crore, indicating that the remaining equity and other sources cover the balance. Furthermore, the EPC contract value of ₹3,517.98 crore awarded to the parent company exceeds the total project cost estimate by roughly ₹316 crore, suggesting that the contract scope may include components or services beyond the base capex covered by the specific MSKVY scheme financing, or that the project cost estimate excludes certain EPC-related margins and overheads allocated to the parent entity.

Vikran Engineering Limited received a show cause notice from the State Tax authority in Jaipur demanding approximately ₹7.8 crore regarding Input Tax Credit discrepancies for FY23.

The notice, issued by the Office of Deputy Commissioner, State Tax, Circle-Vaishali Nagar, Jaipur-IV, was received on September 29, 2026. It cites violations under sections 73, 50, 16, 122, 59, and 160 of the Rajasthan GST Act 2017, read with the Central GST Act 2017 and section 20 of the Integrated GST Act 2017.

The core allegation involves a GST TDS turnover mismatch. The total demand comprises the principal tax amount, accrued interest, and penalty levied on the company.

Company response and impact

Vikran Engineering stated it does not foresee any material impact on its financial or operational activities. The company plans to file detailed objections and replies against the notice before the State Tax Officer. Management asserts that it has a strong case on merits regarding the tax dispute.