NABARD and Tata Cleantech Capital Limited (TCCL) have signed a Subsidiary Agreement (SA) on 28 February 2019 in New Delhi to support development of Solar Rooftop Units for commercial, industrial and residential housing sector clients of the country. The signing of agreement will contribute in achieving the national targets under solar energy as also improve the solar energy reach across India through rooftop projects.
NABARD, being a Direct Access Accredited Entity of Green Climate Fund (GCF), has supported the proposal of TCCL to unlock more than 250 MW solar energy through private sector to expand the use of solar panels across the rooftops of India’s homes, commercial and industrial buildings.
The focus of the agreement is to leverage private sector investment in solar energy project with the support of GCF loan of USD 100 million for a period of 20 years. The Subsidiary Agreement was signed by Mr. K Venkateswara Rao, CGM, NABARD and Mr. Manish Chourasia, Managing Director, Tata Cleantech Capital Limited. Sri H R Dave Deputy Managing Director, NABARD and Senior Officials of TCCL were present on the occasion. Sri Dave said that this GCF line of credit is the first step in the direction of financing private sector needs, which in turn contributes to NDC targets, under Paris Agreement. He mentioned that the loan facility of GCF is expected to develop 250 MW of rooftop solar capacity across India – along with an estimated reduction of emissions by 5.2 million tonnes of CO2 equivalent.
Mr Chourasia, MD, TCCL said that the initiative was a blended financing instrument of about 1625 crore (650 crore of GCF loan facility and 650 crore by TCCL funds and the remaining being the equity share by Developers), deployed for development of Solar roof top segment across the country.
India, which plans to achieve 40 percent of its installed power from non-fossil fuel sources by 2030, has advocated the global growth of solar energy through its leadership in the International Solar Alliance.