The European Investment Bank has signed a €40m ($53m) long-term loan deal to fund renewable energy projects in India.

The money is the first instalment of an €80m loan to India’s SREI Infrastructure Finance, which will deploy the funds to various projects built by mostly by private sector companies.

The projects are set to include wind, solar and hydropower schemes as well as high-efficiency cogeneration.

The investments are designed to help wean itself off thermal power and onto environmentally sustainable resources.

SREI will on-lend the funds to final beneficiaries and identify and pre-select the projects. The EIB will then perform due diligence to ensure that all projects are economically and financially viable, technically appropriate and in compliance with the bank’s environmental and social requirements.