Asian Development Bank (ADB) is to lend $200m to the Indian Government, which will be used by Indian Renewable Energy Development Agency (IREDA) for supporting renewable energy subprojects.

The ADB loan marks the first step in the $500m multitranche financing facility (MFF) allowed to IREDA for its Clean Energy Finance Investment Programme.

Ultimately through various initiatives it is expected that India will have $1bn to hand in support financing for the sector.
Asian Development Bank
The programme is aimed at leveraging public sector resources to support their investments in renewable energy subprojects, involving wind, biomass, hydropower, solar, and cogeneration technologies.

India Ministry of Finance Department of Economic Affairs joint secretary (Bilateral Cooperation) S. Selvakumar told Reuters: “Lack of sufficient long-term debt financing for renewable energy projects in India is one of the major challenges to sustaining high levels of renewable energy deployment.

“This programme will help meet the requirement by providing long-term funds for these subprojects.”

The investment programme is expected to be backed by another $300m in equity and other investments from subproject sponsors. It will also leverage a minimum of $200m as additional debt funds from unrestricted sources, which will raise the cumulative value of the program to nearly $1bn.

ADB said: “This translates into approximately 990 MW of additional renewable energy capacity.”