The US Export-Import Bank’s $1 billion programme to boost India’s clean-energy industry has been suspended after the institution’s lending authority lapsed, an Indian government official working on the project said.
Indian Renewable Energy Development Agency Ltd (Ireda), signed a memorandum of understanding with the US export credit bank in November covering the programme. The funding wasn’t finalized when the Ex-Im Bank’s charter expired on 30 June.
“It was only a memorandum of understanding (MoU) so you may consider it over for all practical purposes as of now,” K.S. Popli, chairman and managing director of the Indian agency, said in a phone interview from New Delhi.
The credit line would be revived if the Ex-Im bank regains its authority, Tarun Kapoor, joint secretary at the ministry of new and renewable energy, said by phone. The US Congress, divided about whether to renew the bank’s charter, allowed the institution’s lending authority to lapse at the end of June.
President Barack Obama announced the credit line on a visit with Prime Minister Narendra Modi in November. It would have underpinned a revival of lending to clean energy projects for the Washington-based institution, which at its peak four years ago contributed $721 million to the industry. The Ex-Im Bank loaned $200 million for renewables in 2014.