New Delhi, Jan 2 (IANS): State-run Energy Efficiency Services Ltd (EESL) has raised its first long-term rupee loan of Rs 500 crore, the undertaking announced on Tuesday.

The government owned Punjab National Bank (PNB)-issued loan will be utilised to fund EESL's capital expenditure for its programmes such as the Street Lighting National Programme, Smart Meter National Programme, Solar Substation and e-mobility projects, 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," it said.

Commenting on the development, EESL Managing Director Saurabh Kumar said in a statement: "This is truly a landmark moment in our company's history targeted at expanding the reach and impact of our energy-efficient lighting, smart metering, renewable energy and electric vehicle programmes."

In March 2018, the EESL and its UK subsidiary EnergyPro Assets acquired British power generation solutions provider Edina UK Ltd for 55 million pound sterling (Rs 493 crore), the statement said.

In May last year, the EESL also signed a loan agreement with the World Bank for $300 million to scale up deployment of energy saving measures in residential and public sectors, it added.