CHENNAI: The US International Development Finance Corporation (DFC) is exploring options with the National Investment and Infrastructure Fund (NIIF), an investment platform backed by the government of India, to support investment in renewable energy projects all over the country, according to its Chief Executive Officer Scott Nathan.
The fund has invested around Rs 4 billion in India in the 2023 financial year (Oct- Sept.), accounting for 10% of its global portfolio and sees India as an important market in terms of growth prospects and strategic importance.
US DFC focuses on US foreign policy objectives which include, "having a diversified, secure and transparent supply chain, in critical industries," he said. It effectively seeks to build alternative supply chains for critical industries that are over-reliant on China like electric vehicles and renewable power. He was speaking on the sidelines of the inauguration of US-based First Solar's plant in Chennai on Thursday.
"For the development of the industries of the future, (like) green and reliable energy. It's critical that we don't end up in a position of dependence. Oil has created dependencies based on where oil is. Let's not replace that dependence on one country for critical materials and the critical equipment necessary for that."
The agency has invested 500 million USD for First Solar's manufacturing facility and lent 425 million USD for the upcoming Tata's TP Solar Limited solar module manufacturing plant in Tamil Nadu. Its financing in India includes a 35 million USD equity investment in SAEL Industries for solar and waste-to-energy power generation, a 10 million USD loan to Upgrid Electrilease, a battery swapping network for two-wheelers and three-wheelers.
It also made a 30 million USD loan for waste recycling and 15 million equity funding in a venture capital firm to take a slice in Indian tech startups. Its projects range from healthcare, agribusiness, infrastructure and financial sectors, apart from climate-related deals which represent 3.5 billion USD. Nathan didn't comment on the outlook for investments in FY 2024.