In one of the biggest deals for the growing renewable energy sector in India, US federal agencies have committed a total $4 billion for both projects and equipment sourcing.
Reports indicate that the US Trade and Development Agency (USTDA) planned to offer $2 billion loan to renewable energy projects. In another association, US Overseas Private Investment Corporation (USOPIC) will lend $1 billion to clean energy projects in India. The deal which saw its inception during PM Narendra Modi’s visit to the US last year, US Exim Bank will culminate $1 billion lending in a month’s time.
Aiming to finance the renewable power project developers in India sourcing components from US, IREDA (Indian Renewable Energy Development Agency) and US EXIM bank signed an agreement to fi nance such projects over a period of 18 years in September 2014. The Indian government recently revised targets for solar and wind capacity addition – Solar 1 lakh Mw by 2019, wind power generation target 10,000 Mw annually. The government would also push domestic manufacturing in renewable energy under its fl agship ‘Make in India’ program.
While wind turbines in the country are mostly domestically sourced, 70% of the country’s solar capacity is based on imported content, mostly from China and the US. While the country aims to add around 4,500 Mw of solar power capacity during the current fi scal to the current 2,600 Mw, the manufacturing capacity in the country is just 1,500 Mw.