Renewable energy power generation across India will receive a boost from a $400 million joint initiative backed by the European Investment Bank and India’s Yes Bank. Yes Bank will manage the new co-financing program for construction of solar power plants and wind farms across the country.
The new private sector renewable energy financing program was announced in New Delhi by Donal Cannon, Head of the European Investment Bank Representation to South Asia and Arun Agrawal, Group President, International Banking, Yes Bank. It will be supported by $200 million from the European Investment Bank, alongside financing from Yes Bank, project promoters and other financial institutions.
The 15-year $200 million EIB loan was approved by the EIB Board of Directors on 12th December and financial details of the new initiative are expected to be finalized in the coming weeks.
The program is designed to streamline financing for a range of renewable energy projects being built and operated by leading Indian corporations and private sector developers. Eligible solar projects have already been identified in the states of Rajasthan, Telangana, Maharashtra and Karnataka and additional wind and solar projects are currently being examined.
“This new financing program will make a significant contribution to harnessing wind power and solar energy to produce green energy, create thousands of jobs during construction and strengthen technical and financial skills for the renewable energy sector to expand,” said Andrew McDowell, European Investment Bank Vice President.
Rana Kapoor, Managing Director and CEO, Yes Bank , added, “The new cooperation between Yes Bank and the European Investment Bank, demonstrates another milestone in our leadership as India’s pre-eminent ‘Green Bank’.”
This new initiative is the first EIB cooperation with Yes Bank, and represents the first support for renewable energy in Asia with a commercial bank. Last year the European Investment Bank provided €19.6 billion for climate related investment worldwide.
In recent months the EIB has made new investment in sustainable transport in India, backing expansion of the Bangalore and Lucknow Metro systems.