PFS, GGGI Collaborate To Establish RE Focused Infra Debt Fund

A memorandum of understanding (MoU) agreement has been signed between India’s infrastructure finance company PTC India Financial Services (PFS) and Global Green Growth Institute (GGGI) for the establishment of an infrastructure debt fund. The objective of the debt fund is to enhance the infrastructural development in the field of renewable energy.

According to the official statement by PFS, Global Green Growth Institute will be offering its technical support to PFS for the setting up of the Renewable energy focused Infrastructure Debt Fund (RIDF) under the agreement. PFS representatives and GGGI director general, Frank Rijsberman discussed how the debt fund will help the developing countries to mitigate the changing climate risks. The two entities are also looking at options that could attract global investors in the debt fund.

The dialogue between the PFS and GGGI also centered on the viable uses of green climate funds that are available in the country. The two entities are also mulling to utilize the RFID for bolstering sunshine sectors like electric vehicles or sustainable transport in India and other emerging economies that will help avert the climate change risks.

“Our collaboration with GGGI is an important step towards helping developing countries achieve their carbon-neutral goals and promote environmental sustainability projects,” said Pawan Singh, Managing Director and Chief Executive Officer, PFS.

The GGGI may also form an Alternate Investment Fund (AIF) alongside the infrastructure debt fund in the future. PTC India Financial Services is a non-banking infrastructure finance company and GGGI is an inter-governmental global organization.

According to the Ministry of New and Renewable Energy (MNRE), an investment of about Rs 17 lakh crore is required in India till 2030 that will see the country achieving 500 GW of energy coming from non-fossil fuels based sources. This means that Rs 1.5 – 2 lakh crore are needed in the renewable energy sector every year from here.