Yes Bank, India's fifth largest private sector lender and the European Investment Bank (EIB) are joining hands to provide $400 million in financing to renewable energy projects.
Yes Bank will manage the new co-financing programme for the construction of new solar power plants and wind farms across the country.
The programme will be supported by $200 million, 15-year loan from the EIB along with financing from Yes Bank, project promoters and other financial institutions.
“This new $400 million initiative demonstrates the shared vision and commitment of both the European Investment Bank and Yes Bank to the increasing renewable energy power generation across India. The new financing programme will make a significant contribution to harnessing wind power and solar energy to produce green energy, create thousands of jobs during construction and strengthen technical and financial skills for the renewable energy sector to expand,” said Andrew McDowell, vice-president, European Investment Bank.
The Indian government has ambitious plans to push solar and wind energy. It has set a target of commissioning 100 gigawatts of solar generating capacity and 60 gigawatts of wind power by 2022.
Last year, the EIB provided 19.6 billion euros for climate-related investment worldwide. It has backed several mass transportation projects in India in recent times. In 2016, it had agreed to provide a loan of 450 million euros to finance the construction of Lucknow's metro rail line and for procuring trains. It is also providing 500 million euros support to Bangalore Metro Rail for purchase of trains and construction of stations.
For Yes Bank, this tie up is a part of its wider commitment, it made in 2015 to finance 5,000 mw of renewable energy projects and also to synchronise with its COP 21 (Paris Climate Conference) commitment of mobilising $5 billion for climate finance by 2020.
