EU to lend €200 mn for Indian private sector renewable energy projects

The EU plans to extend a €200-million loan to finance private sector renewable energy projects in India.

The European assistance forms part of its "strategic partnership" with India and would be made available by the European Investment Bank (EIB) to ICICI Bank, India's largest private bank, under the terms of the first-ever cooperation between the two financial institutions.

The funds would go towards providing long-term financing for solar photovoltaic, biomass and onshore wind power projects by private companies, thereby making a contribution to India's efforts to reduce greenhouse gas emissions, the EIB said on yesterday in a press statement.

The loan is being provided under the EIB's Energy Sustainability and Security of Supply Facility (ESF), a €4.5 billion programme aimed at reinforcing EIB's goal of promotion of renewable energy and energy efficiency in non-EU countries.

The initiative is the first cooperation between the long-term financing institution of the 27-nation EU bloc and India under the ESF programme, according to the statement.

For the period between 2007 and 2013, the EIB is authorised to lend up to €3.8 billion for financing projects that contribute to the elimination or abatement of greenhouse gas emissions through foreign direct investment or technology and know-how transfer.