Japan International Cooperation Agency (JICA) has signed an agreement with Indian non-banking financial company Tata Cleantech Capital Limited (TCCL) to infuse JPY 10 billion loan into businesses across India that focus on renewable energy generation, e-mobility solutions as well as energy efficiency. This loan will be provided through the private sector investment finance scheme of JICA and is co-financed with the Sumitomo Mitsui Banking Corporation.
The Government of India ratified the Paris Agreement in 2016, in which India committed to cut the greenhouse gas (GHG) emissions intensity of its GDP by 33-35% by 2030. To achieve the target, the Indian Government is promoting mitigation measures such as the installation of renewable energy (solar power, wind power, etc.), energy-efficient equipment, and electric vehicles.
JICA’s loan will support TCCL to mitigate the impact of climate change by offering green finance, which will contribute to decrease the emission of GHG in India. It will also contribute to SDGs (Sustainable Development Goals) Goals 7 and 13. JICA will continue its support for climate change initiatives globally and continue to mobilize private finance for this sector.
Manish Chourasia, Managing Director, Tata Cleantech Capital Limited, said: “The partnership with JICA is a significant milestone for TCCL that will enable us to accelerate the pace of transition to clean energy in India. Our focus will continue to be to fund and support projects across Renewable energy, e-mobility, and energy efficiency sectors. Our aim is to channelize and mainstream climate finance in India to help mitigate the impact of climate change.”
TCCL, a joint venture between Tata Capital Limited (Tata Group) and IFC (World Bank), is a private-sector green investment bank with a focus on climate finance and advisory services. It has contributed to the development of 9.8 GW renewable energy, which has averted annual carbon emissions of 15.1 MT.
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