ADB, India Sign $200 Million Loan to Support Renewable Energy Projects
The Asian Development Bank (ADB) and the Government of India have signed a $200 million loan agreement to support lending by Indian Renewable Energy Development Agency (IREDA) to eligible renewable energy subprojects in India.
The loan is the first tranche of a $500 million multitranche financing facility (MFF) to IREDA for the Clean Energy Finance Investment Program. The Program aims to leverage public sector resources to catalyze private sector investments in renewable energy subprojects including wind, biomass, hydropower, solar, and cogeneration technologies, according to ADB.
“ADB’s loan will help the government scale-up renewable energy infrastructure by facilitating investments in projects that will balance the objectives of growth, climate change, and energy security,” said M. Teresa Kho, Country Director for ADB in India, who signed the loan agreement on behalf of ADB. “ADB funds can be used to finance up to 50% of the subproject cost, and the first tranche loan will help IREDA debt finance around 10 or more renewable energy projects, depending on the individual project sizes.”