EESL signs 7-year loan agreement with PNB for Rs 500 crore

State-run Energy Efficiency Services (EESL) said Wednesday it has raised its first long-term rupee loan of Rs 500 crore from Punjab National Bank. The loan shall be utilised towards funding capital expenditure of EESL's flagship programmes including Street Lighting National Programme, Smart Meter National Programme, Solar Substation, and E-Mobility project, a company statement said.

The agreement for the seven-year loan was signed with a two-year moratorium, with the interest rate being linked to PNB's Marginal Cost of Fund-Based Lending Rate (MCLR), presently at 8.45 per cent per annum. EESL Managing Director Saurabh Kumar said the loan will also channel India's capabilities towards leading the global charge against climate change from the front.

(With inputs from agencies.)