Bondada Engineering Limited has secured a major financing milestone for its energy storage ambitions, receiving sanction for credit facilities from Canara Bank to fund the debt portion of its Battery Energy Storage System (BESS) project with Tamil Nadu Green Energy Corporation Limited (TNGECL).
The sanction represents the company’s first large-scale, bank-funded term loan and marks a strategic shift toward an asset-ownership model designed to generate stable, long-term annuity-based revenue streams. The project is also eligible for Viability Gap Funding (VGF) amounting to ₹108 crore, further strengthening its financial viability.
According to the company, the successful financial closure demonstrates strong lender confidence in Bondada Engineering’s execution capabilities, governance framework, and the overall viability of the project. The funding is expected to support timely completion in line with the committed project schedules.
The development aligns with India’s broader energy transition goals, particularly the government’s focus on large-scale energy storage to support renewable energy integration and improve grid stability. The enhanced VGF support for BESS projects announced in the Union Budget is also expected to accelerate growth in the storage segment.
Bondada Engineering stated that it will continue to scale its renewable energy and energy storage portfolio through disciplined capital allocation, strong governance, and operational excellence, with the aim of delivering sustainable long-term value to stakeholders.
