(Image source: ADB India website)
The Asian Development Bank (ADB) and the government of India signed a $ 200 million loan agreement to support lending by the Indian Renewable Energy Development Agency (IREDA) to eligible renewable energy sub-projects in the country.
This is part finance to the the first tranche of its $ 500-million facility to IREDA for the Clean Energy Finance Investment Program. The Program aims to leverage public sector resources to catalyze private sector investments in renewable energy sub-projects including wind, biomass, hydropower, solar, and cogeneration technologies.
"ADB's loan will help the government scale-up renewable energy infrastructure by facilitating investments in projects that will balance the obje
ctives of growth, climate change, and energy security," said M. Teresa Kho, Country Director for ADB in India, who signed the loan agreement on behalf of ADB.
"ADB funds can be used to finance up to 50 per cent of the sub-project cost, and the first tranche loan will help IREDA debt finance around 10 or more renewable energy projects, depending on the individual project sizes."
The total renewable energy investment programme is around $ 1 billion and is expected to leverage an estimated $ 300 million in equity and other investments from sub-project sponsors, and at least $ 200 million of additional debt funds, according to the release.
IREDA, is a government-owned NBFC, promotes renewable energy investment and this new project will help producing an additional 990 MW renewable energy.