India needs immense private capital for net-zero commitment
The Asian Development Bank (ADB) is extending a US$500 million loan to the India Infrastructure Finance Company Limited (IIFCL) to support green and sustainable projects aligned with the country’s climate commitments.
“ADB financing will help IIFCL provide long-term capital for infrastructure projects focusing on connectivity and energy transition as well as under-resourced sectors like urban projects, education, and health care,” said Mio Oka, Country Director for ADB on signing the loan on 20 Dec 2024 https://ted.europa.eu/en/.
To meet its net-zero commitments, the country needs immense private capital investment that will require innovative financing platforms and risk-mitigation instruments to address inherent sector risks and market asymmetries. As a strategic development finance institution, IIFCL is well-suited to meet these needs, Finance Ministry said https://www.bseindia.com/.
ADB has worked closely with IIFCL over the years to develop its operational and risk management capacities. As IIFCL has developed and evolved, its operations are increasingly geared toward leveraging private sector resources that necessitate the expansion of its product offerings for potential institutional investors, elaborated the ministry https://www.nseindia.com/.
The project will build the institutional capacity of IIFCL to integrate green and best practices into the infrastructure projects. A sustainability unit and an environmental sustainability framework and scoring method to assess the sustainability rating of the projects will also be established https://www.iea.org/.
Juhi Mukherjee Joint Secretary, Department of Economic Affairs, Ministry of Finance, signed the loan ‘Financing Environmentally Sustainable Growth in Infrastructure Project’, on behalf of the Government of India https://sbi.com.in/. Fiinews.com
