Bondada Engineering Secures Term Loan Sanction from Canara Bank for BESS Project
Bondada Engineering Limited has secured credit facility sanction from Canara Bank for its BESS project with TNGECL, representing the company's first large-scale bank-funded term loan. The project includes INR 108 Crore in Viability Gap Funding and marks a strategic shift towards asset-ownership with annuity-based revenue streams. This development aligns with India's energy transition objectives and demonstrates strong lender confidence in the company's capabilities.
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Bondada engineering Limited has secured a significant milestone in its strategic expansion with the sanction of credit facilities from Canara Bank for its Battery Energy Storage System (BESS) project with Tamil Nadu Generation and Distribution Corporation Limited (TNGECL). The company announced this development on February 11th, 2026, through a regulatory filing with BSE Limited.
Strategic Milestone and Financial Structure
This sanction represents the company's first large-scale, bank-funded term loan, marking a pivotal shift towards an asset-ownership model designed to generate stable, long-term annuity-based revenue streams. The project structure demonstrates the company's evolution from traditional contracting to sustainable asset ownership.
| Parameter: | Details |
|---|---|
| Funding Bank: | Canara Bank |
| Project Partner: | TNGECL |
| Project Type: | Battery Energy Storage System (BESS) |
| Viability Gap Funding: | INR 108 Crore |
| Strategic Significance: | First large-scale bank-funded term loan |
Project Viability and Government Support
The BESS project qualifies for Viability Gap Funding aggregating to INR 108 Crore, providing additional financial support for the initiative. This funding mechanism reflects the government's commitment to promoting energy storage solutions as part of India's broader energy transition strategy.
The successful financial closure demonstrates strong lender confidence in Bondada Engineering's execution capabilities, project viability, and governance framework. This confidence positions the company to complete the project within committed timelines while maintaining operational excellence.
Alignment with National Energy Objectives
The development aligns strategically with India's national energy transition objectives, particularly supporting the Government of India's emphasis on energy storage solutions. These systems play a crucial role in:
- Supporting renewable energy integration
- Enhancing grid stability
- Facilitating efficient energy management
- Contributing to sustainable power infrastructure
The recent Union Budget's substantial enhancement in VGF for BESS projects further reinforces the sector's long-term growth potential and policy support, creating a favorable environment for such initiatives.
Future Strategic Direction
Bondada Engineering Limited has outlined its commitment to scaling its renewable energy and energy storage portfolio through disciplined capital allocation, robust governance, and operational excellence. The company emphasizes its focus on delivering sustainable long-term value to all stakeholders while maintaining high standards of project execution and financial management.
Historical Stock Returns for Bondada Engineering
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.48% | +2.02% | +5.20% | -18.10% | -10.35% | -52.45% |
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