The solar projects across the nation have received yet another impetus with EIB (European Investment Bank) now striking a partnership deal with the biggest bank in India for disbursing around $200 million in debt.
The EIB (European Investment Bank) recently made an announcement that it will be providing around $214 million to SBI (State Bank of India) for facilitating the debt funding for 4 big-scale solar power projects in the country. The sum total capacities of all these projects are around 530 MW. The finance in the form of debt will be made available to the project developers by one of the subsidiaries of the SBI (State Bank of India), SBI Capital Markets. The project developers are now expected to actually back this type of funding with a sum total investment of around $693 million.
As per the press release that was issued by EIB, the projects have now been clearly identified in South Indian states of Telangana as well as Tamil Nadu for funding. Both of these states in the south of India have actually seen a great level of activity in terms of competitive auctions for solar power projects in the last few months.
The EIB may even sign some really good deals with the other finance institutions in this nation like the IREDA (Indian Renewable Energy Development Agency) and IIFL (Indian Infrastructure Finance Ltd). India is now also seriously looking to raise the funds from some popular global finance institutions for the ambitious solar mission of the nation that is actually targeting around 100 GW of the total installed solar power capacity by the end of March 2022. The recently finalized auction of 750 MW solar power park in Madhya Pradesh will be receiving the funding at around 0.25 percent from the IFC (International Finance Corporation). The solar power park auction has yielded to the nation’s least tariff ever of INR 3.30/kWh.
India has been marching firmly towards the goal of generating 175 GW of power from renewable energy by the end of year 2022. Many firms (both Indian and International) are now supporting India with necessary funding and also projects that can actually take the country closer towards achieving the target.
There have been a lot of startup companies in the nation that have been actively contributing to this goal set by the Indian Government. Most of these start-ups are supporting the rural areas of India by introducing solar equipment that could generate power for irrigation purposes. The support from foreign nations will also very certainly help India in achieving its goal quite effortlessly in a matter of few years.