With the Indian government having revised up its solar investment target to $100 billion by 2022, reports are emerging of a plan by Narendra Modi's administration to finance the nation's ambitious plans with the creation of five $5 billion funds.
According to a report today (Friday) by Indian business daily Livemint, the government is planning to call on state-owned institutions including the Power Finance Corp., Rural Electrification Corp. (REC), the Indian Renewable Development Agency (IREDA), the Industrial Finance Corporation of India (IFCI), SBI Capital Markets Ltd and the majority state-owned Industrial Credit and Investment Corp. of India Bank.
Although the report cites an anonymous REC employee as stating the funding plans are at an early stage, it is based on information from unnamed government sources and includes a denial by an IFCI spokesman of having any knowledge about the plans and no comments from any of the other institutions named.
According to Livemint, the resulting $25 billion funds would be used to finance all renewables, with Modi having previously stated his desire for solar, hydro, biomass and wind to drive a renewables revolution in the nation.
Livemint states IREDA has already leverage JPY 30 billion over five years from the Japanese International Co-operation Agency, $1 billion from the U.S. Export-Import Bank and 100 million from French development bank Agence Francaise de Developpement.
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