Mumbai, Jan 28 (PTI) Britain's official development finance institution CDC Group on Thursday announced a USD 30 million credit facility to Tata Cleantech Capital - an arm of Tata Capital - under its green lending facility.
This is the first such green loan facility extended by the British impact investor.
The facility will enable Tata Cleantech to offer loans to businesses across the country that focus on e-mobility solutions as well as water and energy efficiency, thus help mitigate the effects of climate change, a Tata Capital statement said, adding this is CDC's first directed green lending facility.
Tata Cleantech is a joint venture between Tata Capital and the International Finance Corporation (IFC) and is the first of its kind private sector green investment bank with a focus on climate finance and advisory services.
In 2019, it secured USD 100 million line from the Green Climate Fund to develop a roof-top solar market.
India is the fourth-largest emitter of greenhouse gas emissions and is among the top 10 water consuming countries in the world.
The CDC loan aims to address the financing barriers by directing lending to specific sub-sectors, incentivising rapid deployment of capital at scale thus helping achieve the four of the sustainable development goals -- clean water and sanitation (goal 6), affordable and clean energy (7), responsible consumption and production (12) and climate action (13).
Tata Cleantech's managing director Manish Chourasia said they will help develop the nascent cleantech sectors -- e-mobility, energy and water efficiency through this directed green lending facility.
Srini Nagarajan, managing director and head of Asia at CDC, said this pioneering facility is the first of its kind for CDC and helps address some of the most important climate and resource challenges India is experiencing.
Tata Cleantech has financed over 220 projects and has contributed to the generate 7.7 gw of renewable energy. It has a loan portfolio value of USD 850 million. PTI BEN BAL BAL