The renewable energy segment, which has been identified as a sunrise industry in the country, received a shot in the arm last month when The United States Agency for International Development (USAID) and the US International Development Finance Corporation (DFC) announced a $41 million-loan guarantee program to finance investment in renewable energy solutions by Indian SMEs.
“USAID and DFC are jointly sponsoring a $41 million loan portfolio guarantee to help finance investments by Indian small and medium enterprises (SMEs) in renewable energy solutions, including rooftop solar installations. These loans will enable SMEs to access reliable power and cut costs,” USAID had said.
In an exclusive interview to India Global Business, Ramona El Hamzaoui, Acting Director of USAID’s India office laid out USAID’s priorities in India saying, “USAID supports the Government of India’s development and climate priorities through a series of programs and partnerships across climate adaptation, clean energy, sustainable landscapes, and disaster risk reduction. In partnership with the Government of India, the private sector, and national and international research organizations, USAID is implementing resilience-building activities with vulnerable communities in ecologically-sensitive regions across India.”
This runs parallel with the news, reported by India Global Business, that the India-based Adani Green Energy (AGEL) raised more than $1 billion debt package for its 1690MW renewables portfolio through agreements signed with global lenders – a major validation of the large corporate footprint in the sector. The $1.35 billion revolving project finance facility will initially fund a 1.69GW portfolio of solar and wind projects to be built by four special purpose vehicles in Rajasthan.
There is no doubting the fact that a lot of ground still needs to be covered in this sector but the fact that the scope and potential has been thrown wide open ensures that the sky is clearly the limit and India has by thought and action begun the journey towards realising its goals.