MUMBAI: International Finance Corporation (IFC), a World Bank group member, Wednesday extended a seven-year long-term loan of Rs 1,000 crore to Aditya Birla Finance (ABFL).
ABFL, the NBFC arm of Aditya Birla Capital, would use the proceeds to finance renewable energy projects and help the country move towards its target of 175 GW of renewable energy capacity by 2022.
"This is not just about a loan but also about being able to access the expertise that IFC has in this area and together making a small difference to the energy requirements of our country," Aditya Birla Capital's chief executive Ajay Srinivasan, said in a release.
The government plans to increase the country's renewable energy capacity to 175 GW, comprising solar, wind, biomass, and small hydro, by 2022.
With this funding, IFC would help ABFL develop its renewable energy program by providing longer-tenor financing, knowledge sharing, and setting of standards.
IFC brings to the partnership its deep understanding of the renewable energy sector.
The project complements IFCs India Country Strategy for FY17-21, which commits to enabling electricity access for 60 million people, creation of 25 GW of installed renewable capacity, and contributing 11 per cent to the total energy-related greenhouse gas avoidance potential.
The IFC green loan, sanctioned in March 2018, is an Indian rupee loan under track III of the Reserve Bank of Indias guidelines for external commercial borrowings.