REC Limited has invited bids to engage lenders’ legal counsel to carry out the land due diligence of 603 acres of land offered by Adani Solar Energy RJ Two as security to finance its project.

REC has approved financial assistance of ₹6.81 billion (~$81.32 million) to Adani Solar Energy RJ Two to commission a 150 MW solar power project in Jodhpur, Rajasthan. Adani Solar must create a mortgage over the project lands to secure this loan.

The last day to submit the bids is August 7, 2024. Bids will be opened on the same day.

The duration of the assignment is two months from the date of award or an extended period at the sole discretion of REC.

The selected legal counsel will undertake various tasks related to providing legal services.

These tasks include participating in meetings and conferences with REC or the borrower to offer legal advice and opinions on issues related to land due diligence and the title search report, ensuring a clear and marketable title for creating a valid and enforceable mortgage on the project land.

The legal counsel must draft and amend security and mortgage documents to secure REC’s interests. They must be involved in the finalization and execution of these security documents, overseeing the creation of the mortgage. This includes conducting a thorough review and due diligence of the land offered as security, examining title deeds, property documents, revenue records, and searching various authorities’ offices to certify valid, absolute, and marketable titles, ensuring the property is free from encumbrances.

They must advise the lender on the project’s creation and security extension, including the documents for a valid and legally enforceable mortgage over the project land. They may need to visit the site, if required, and provide a final opinion on the validity and enforceability of the documents, as well as the creation and perfection of the security or charge.

The legal counsel must also offer any other advice needed to complete the mortgage documentation as per the sanction letter from REC, oversee the timely registration of charges and documents with the Registrar of Companies, Registrar of Assurances, and Central Registry of Securitisation Asset Reconstruction and Security Interest of India, and provide any additional advice required to complete the assignment.

In April, REC availed a green loan of ¥60.5 billion (~$387.6 million) from SACE, an Italian export credit agency, to finance a slew of green projects in India.

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