Monday, August 29, 2011

India to receive 200 bn euro loan from EU


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India will receive a loan of 200 million euros from the European Union to finance private sector projects for the development of renewable energy resources.

The EU's assistance comes as part of its "strategic partnership" with India and will be made available by the European Investment Bank (EIB) to ICICI Bank, India's largest private bank, in the first-ever cooperation between the two financial institutions.

It is intended to provide long-term financing for investments on a number of electricity generating projects, especially in the areas of solar photovoltaic, biomass and onshore wind power by private companies, thereby making a contribution to India's efforts to reduce greenhouse gas emissions, the EIB said on Monday in a press statement.

The loan is being provided under the EIB's Energy Sustainability and Security of Supply Facility (ESF), a 4.5 billion euro programme designed to reinforce the EIB's goal of promoting renewable energy and energy efficiency in non- EU countries.

This is the first cooperation between the long-term financing institution of the 27-nation EU bloc and India under the ESF programme, the statement said.

The ESF is used when the bank does not need a credit guarantee from the EU because the recipients are investment-grade countries or where appropriate security can be provided

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