(Bloomberg) -- Agratas Energy Storage Solutions Pvt Ltd. is in talks with a group of banks to raise as much as $500 million via green loan, according to people familiar with the matter.
The wholly owned subsidiary of Tata Sons Pvt Ltd develops battery cells, with factories in India and the U.K. Its facilities are designed to be powered by clean energy, according to the company's website.
Agratas would use the proceeds from the loan for its factories, said the people, who asked not to be identified when discussing a confidential matter. The tenor would probably be more than five years.
The administration of Indian Prime Minister Narendra Modi is striving to build capacity in a range of technologies, including semiconductors, solar panels and pharmaceuticals. The effort is winning support from the US among other nations hoping that diverse supply chains will mitigate China's economic dominance.
Gujarat, the Indian coastal state that's home to Modi, has received a string of investments. Tata said last year it plans to set up a 20 gigawatt hour lithium-ion battery plant in the state.
A Tata Sons representative declined to comment when contacted by Bloomberg. The terms of the deal could still change.
--With assistance from P R Sanjai.
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