Tata Cleantech Capital, a non-banking financial company, on Thursday secured a 10-billion-yen loan agreement from Japan International Cooperation Agency (JICA) for offering loans to Indian firms focussing on clean energy projects.
According to the press release, the loan would be provided through a private sector investment finance scheme of JICA and co-financed with the Sumitomo Mitsui Banking Corporation.
JICA’s loan would support Tata Cleantech to mitigate the impact of climate change by offering green finance, which would contribute to decrease the emission of greenhouse gas emissions in India. It will also contribute to sustainable development goals 7 and 13.
“This partnership will enable us to accelerate the pace of transition to clean energy in India. Our focus will be on funding and supporting projects across renewable energy, e-mobility and energy efficiency sectors by channelising climate finance in India to mitigate climate change impact,” said Manish Chourasia, managing director, Tata Cleantech.
Under the Paris Agreement, India has committed to cut greenhouse gas emissions intensity of its GDP by 33-35 per cent by 2030 and is promoting mitigation measures such as installation of renewable energy, energy efficient equipment, and electric vehicles to achieve the target.
Tata Cleantech is a joint venture between Tata Capital and International Finance Corp with focus on climate finance and advisory services.