A senior government official said that they are in discussion with ADB for loans of 500 million each for solar parks and rooftop executives and they also plan to raise 500 million each for solar parks and rooftops respectively from the World Bank for which the proposal is in line with the department of economic affairs (DEA).
KfW is already involved in India's clean energy sector through its commitment of lending EUR1 billion for setting green energy transmission corridors. Jica has signed agreements with Indian Renewable Energy Development Agency Ltd and Small Industries Development Bank of India.
Foreign loans are cheaper than those offered by local banks and financial institutions. However, even though the interest costs of foreign loans are lower, project developers have to hedge their foreign currency exposure.
An investment of 200 billion in green energy projects has been expected by the government. The new government has secured pledges from 213 companies to set up renewable energy capacity of 266 gigawatts over the next five years. The NDA government wants to ensure 24-hour power supply to all households in a chronically power-deficit country.
India imports 77% of its energy requirements and the government has the desire to cut this import bill of around 150 billion. The emphasis on solar and wind is expected to strengthen the country's standing at global climate change negotiations.
Source: altenergyprograms.blogspot.com
