Euro150m for electrifying remote regions
European Investment Bank (EIB) and Indian Renewable Energy Development Agency (IREDA) Ltd have signed a loan agreement for a second line of credit (LoC) of Euro 150 million on non-sovereign basis.
It will be used for financing Renewable Energy and Energy Efficiency projects in India. More than 1.1 million households are expected to benefit from clean energy produced with these funds.
The line of credit is for tenure of 15 years including a grace period of 3 years. The loan agreement was signed in New Delhi on 10 Mar 2018.
Speaking at the agreement signing, R K Singh, Minister of State (IC) Power and New & Renewable Energy, said, “There are villages in Ladakh and Arunachal Pradesh where you track on foot for three to four days to reach.
“Our aim is to bring electricity to even these remote places…. We have decided to go green, as we have a responsibility to future generations and the planet.”
Highlighting the fact that renewable energy (RE) has now become economically viable, Singh said that “companies bidding for RE projects are getting funds from all over the world…. Today, many countries want us to share our experience in this field.”
Ministry of New & Renewable Energy Secretary Anand Kumar said that two factors, efficient technology and easy finance, are important for the success of renewable energy sector.
He expressed confidence that India will exceed its target of 175 GW renewable energy by 2022.
IREDA chairmand and managing director K S Popli added that the speed with which the second line of credit was negotiated shows the mutual confidence and comfort that EIB and IREDA had developed after working with each other for last 4 years.
Moreover, the EIB has extended this line of credit without insisting for sovereign guarantee from the Indian Government which also shows their commitment and confidence in the sector, he pointed out.
EIB President W. Hoyer appreciated India’s role in International Solar Alliance and its commitment to Paris climate deal. He said that with much sunlight, solar energy is evidently a solution here.
EIB is the long-term lending institution of the European Union owned by its Member States. It works closely with other EU institutions to implement EU policy and is also engaged in multilateral financing. More than 90 per cent of its activity is in Europe but it is also a big investor globally.
IREDA is the dedicated financing arm of the Ministry of New and Renewable Energy for financing the renewable and energy efficiency projects and has been spearheading the growth of renewable energy in the country for over three decades. fii-news.com
