US’ DFC Okays $350 Mn for Development in India Including over $200 Mn for Solar

The US-Based Development Finance Corporation (DFC) has sanctioned about $350 million of investment for development in India under various projects including more than $200 million for the solar energy projects.

DFC is an independent agency of the US Government that provides financing for private development projects.

This investment is part of the $1 billion of investments approved by DFC that will advance development in Africa, Latin America, the Indo-Pacific, and emerging markets globally, said DFC.

Commenting on the investment, Adam Boehler, Chief Executive Officer of DFC, said, “these projects will uplift some of the most underserved communities around the world.”

“They demonstrate DFC’s commitment to use its enhanced toolkit to deliver transformative results. The impact of these projects will be particularly meaningful as the world continues to fight the health and economic fallout of the pandemic,” Boehler added.

On these investments, DFC said in a statement that “the approved projects will strengthen health systems, bolster food security, and support other highly impactful development outcomes. Several projects also expand access to financial services for women, small businesses, and other underserved groups at a time when capital is in desperate need. The projects have a particular focus on development impact, with nearly 60 per cent of investments in low- and lower-middle-income countries.”

For the solar energy sector, America’s DFC has approved $142 million loan to ReNew Power for the development, construction, and operation of a 300 MW solar power plant in Rajasthan.

Besides, another $50 million loan to Sitara Solar Energy Pvt Ltd has been approved that will enable the company to build and operate a 100 MW solar power plant in Rajasthan.

Also, another $27.3 million loan approved for Paryapt Solar Energy Pvt Ltd to build and operate a 50 MW solar power plant in Gujarat.

Among other projects in India for which the grant has been approved includes – $20 million to Freshtohome for strengthening food security; $30 million investment in South Asia Growth Fund II for addressing resource scarcity; $10.371 million to support Milk Mantra for empowering smallholder dairy farmers; $2.7 million to Stellapps Technologies for innovating the dairy industry; $50 million to Northern Arc Capital for scaling up high-impact businesses; and $14.6 million to World Business Capital for increasing access to education.

Earlier in February, the Institute for Energy Economics and Financial Analysis (IEEFA) in its report revealed that policy certainty around renewable energy will increase domestic and international investment in India.

Besides, Bloomberg New Energy Finance, in its Climatescope survey titled “Emerging Markets Outlook 2019”  has placed India at the top among developing economies. The top ranking in a list of 104 emerging economies will come as a reassurance to many investors, both existing and potential, about their plans for the country.