The EIB and the Indian Renewable Energy Development Agency (IREDA) Ltd signed a loan agreement for a second line of credit (LoC) totaling €150 million, on March 10.
The credit has a term of 15 years, including a grace period of three years, and will be used for financing renewable energy (RE) and energy efficiency projects in India. More than 1.1 million households are expected to benefit from the clean energy generated from these funds.
The agreement was signed by K. S. Popli, chairman and MD, IREDA and W. Hoyer, president, EIB in the presence of R. K. Singh, Union Minister of State Power (MoP) and New & Renewable Energy (MNRE), and Anand Kumar, Secretary, MNRE.
Speaking about India’s goal to electrify every single village, R K Singh said, “There are villages in Ladakh and Arunachal Pradesh where you trek 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 RE has now become economically viable, he said that companies bidding for projects are receiving funds from all over the world. “Today, many countries want us to share our experience in this field,” he said.
Anand Kumar, Secretary, MNRE said that two factors – efficient technology and easy finance – are important for the success of the RE sector. He expressed confidence that India will exceed its target of 175 GW renewable energy by 2022.
K S Popli, CMD, IREDA added that the speed with which the second line of credit was negotiated shows the mutual confidence and comfort that EIB and IREDA have developed after working with each other for last four years.
Moreover, the EIB has extended this line of credit without insisting on sovereign guarantee from the Government of India, which also shows its commitment and confidence in the sector, he added.
Finally, W. Hoyer, President, EIB said he appreciated India’s role in the International Solar Alliance and its commitment to the Paris climate deal. He said that with such high solar irradiation, solar energy is evidently a solution here.
Tomasz Kozlowski, Ambassador of the European Union to India was among the dignitaries present along with other senior officials of MNRE, IRDEA and EIB.