Ex-Im Bank, IFC prop up Indian cleantech sector
The US Export-Import Bank (Ex-Im) has approved an USD80.32 million loan to India’s Reliance Power for the purchase of concentrated solar power (CSP) technology.
The loan will support Reliance subsidiary Rajasthan Technique Energy, which is being co-financed by the Asian Development Bank and Dutch development bank FMO.
The move is expected to directly benefit US companies including Areva Solar, DuPont, 3M Power, Sika and CCI.
"This transaction will give renewable energy US exporters a larger footprint in India, and it will help them be competitive against the German and Chinese companies in this field," said Fred Hochberg, chairman and president of the Ex-Im Bank.
Meanwhile the International Finance Corporation (IFC) says it will provide up to 20 percent of a USD25 million Indian cleantech fund, the the Indian Fund for Sustainable Energy (Infuse) at the Centre for Innovation, Incubation and Entrepre-neurship of the Indian Institute of Management, Ahmedabad.
This fund will invest in entrepreneurial solutions across the cleantech industry and is backed by BP Ventures, the Union ministry of new and renewable energy and the Technology Development Board.
Despite the presence of affordable, globally proven technologies, there exists a gap in funding for early-stage cleantech companies in India, with no major venture capital fund actively investing in these on an ongoing basis, said the IFC.