The Asian Development Bank recently announced the details of a major funding package to boost India’s rooftop solar power program.
The multilateral bank will provide $500 million in debt funding for rooftop solar power projects in India. According to a press release, $330 million will be provided by the bank itself, while the balance of $170 million will be provided by the Clean Technology Fund.
The funding will help offset 11 million tonnes of carbon dioxide emissions over a period of 25 years. The ADB has signed an agreement with a public sector bank — Punjab National Bank — for the final disbursal of loans.
The $500 million funding will be complemented by $300 million equity investment and $200 million of additional debt funding from commercial banks; thus taking the total investment for this particular program to $1 billion.
Earlier this year, the Ministry of New & Renewable Energy announced that the government managed to secure funding pledges from various multilateral and national development banks for its ambitious rooftop solar power program. The World Bank has committed $620 million, while the Asian Development Bank and BRICS New Development Bank have pledged to provide $500 million and $250 million, respectively. The German development bank KfW has provided $100 million, and negotiations for $1.14 billion worth of funding are underway, the ministry reported.
India has set a target to have 100 GW of solar capacity operational by April 2022, including a target of 40 GW for rooftop solar power systems.
The government has taken initiatives to boost the development of the sector. The Cabinet of Ministers approved a proposal that will increase the subsidy for rooftop solar power systems to $770 million by 2022, which is expected to be in addition to the debt funds raised from international development banks.
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