The European Investment Bank (EIB) and Indian Renewable Energy Development Agency (IREDA) Ltd. have signed a loan agreement for a second line of credit of Euro 150 million (Rs. 1,200 crore) on a non-sovereign basis, a government statement said.
The line of credit is for tenure of 15 years, including a grace period of 3 years, and it will be used for financing renewable energy and energy efficiency projects in India. More than 1 million Indian households will benefit from the new initiative. EIB has extended this line of credit without insisting for sovereign guarantee from Government of India.
“There are villages in Ladakh and Arunachal Pradesh where you track on foot for three to four days to reach. Our aim is to bring electricity to even these remote places…. We have decided to go green, as we have a responsibility to future generations and the planet,” Power Minister R.K. Singh said, speaking about India’s fascinating journey to electrify every village.
India is confident to exceed its target of 175 GW renewable energy by 2022.
W. Hoyer, President, EIB, appreciated India’s role in the International Solar Alliance and its commitment to the Paris climate deal.
He said that with much sunlight, solar energy is evidently a solution here. Tomasz Kozlowski, Ambassador of the European Union to India was among the dignitaries present along with other senior officials of MNRE, IRDEA and EIB.