The power transmission and renewable energy industry in India is undergoing rapid expansion, driven by the nation’s push for energy security, sustainability, and infrastructure modernization. MSMEs in this sector play a critical role in manufacturing transmission equipment, providing grid infrastructure solutions, and developing renewable energy projects such as solar, wind, and biomass. With India targeting 500 GW of non-fossil fuel capacity by 2030, MSMEs in this space have significant opportunities for growth but also face financial challenges that require customized funding solutions.
Key Financial Challenges in Power Transmission & Renewable Energy
- High Initial Investment: Setting up power transmission infrastructure or renewable energy plants requires large upfront capital.
- Delayed Payment Cycles: Payments from government contracts and power distribution companies (DISCOMs) are often delayed by months.
- Technological Upgradation Costs: Continuous investment is needed in smart grid technologies, energy storage, and high-efficiency transmission.
- Working Capital Strain: Long project cycles mean cash flow gaps between execution and payment realization.
- Land & Equipment Costs: Renewable energy businesses require significant funding for solar panels, wind turbines, transformers, and grid connectivity infrastructure.
Tailored Financial Solutions for MSMEs in Power Transmission & Renewable Energy
- Unsecured Bridge Loans – Fast & Flexible Capital
Given the high capital requirements and delayed payments, our unsecured bridge loans provide MSMEs with the liquidity needed to sustain operations:
- No collateral required – ideal for businesses facing working capital gaps.
- Loan Amounts: INR 2 crore to 25 crore.
- Quick disbursal to cover equipment procurement, project execution, and operational expenses.
- Flexible repayment aligned with contract-based revenue cycles.
- Long-Term Project Financing
- Grid Infrastructure & Transmission Equipment Loans: Funding for transformers, substations, and power distribution networks.
- Solar & Wind Project Financing: Loans for solar panel installations, wind turbines, and energy storage systems.
- Property & Land Acquisition Loans: Long-tenure funding for acquiring land for renewable energy projects and substations.
- Working Capital & Invoice Discounting
- Cash Credit & Overdraft Facilities: To manage operational expenses and ongoing projects.
- Invoice Discounting & Bill Discounting: Liquidity solutions for delayed payments from DISCOMs and large infrastructure contracts.
- Equipment Leasing & Finance: Flexible financing for acquiring essential machinery for solar panel production, wind farm setup, and high-voltage transmission infrastructure.
Industry Growth & Government Incentives
- Renewable Energy Push: India’s commitment to net-zero emissions by 2070 is driving rapid investment in green energy MSMEs.
- Government Schemes: Subsidies and incentives under PM-KUSUM, Solar Park Development, and National Green Hydrogen Mission create significant opportunities.
- Private Sector Investments: Increasing FDI and domestic funding in energy storage, EV charging infrastructure, and smart grids boost sector growth.
At Capstone, we understand the financial constraints and growth potential of MSMEs in power transmission and renewable energy. Whether you require bridge loans to handle delayed payments, long-term financing for equipment, or working capital solutions, we provide customized funding to ensure seamless operations and expansion in this dynamic sector.
