India, World Bank ink loan agreement on energy efficiency
New Delhi : India on Tuesday signed a $220-million loan agreement with the World Bank to scale up energy saving steps in residential and public sectors.
It inked another $80-million guarantee agreement for 'India Energy Efficiency Scale-Up Programme' that is expected to avoid lifetime emissions of 170 million tonnes of carbon dioxide and also help prevent additional generation of an estimated 10 gigawatt of greenhouse gases, an official statement said.
This would be over 50 per cent of India's target of 19.6 gigawatt as per the Paris Accord, it added.
The $220 million loan has a five-year grace period and a maturity of 19 years. The $80 million guarantee will partially cover repayment risks to commercial lenders or investors to enable Energy Efficiency Services Limited (EESL) raise funds for its programme, the statement said.
The government said that the programme, to be implemented by the EESL, will strengthen EESL's institutional capacity and enhance its access to commercial financing.
Economic Affairs Joint Secretary Sameer Kumar Khare said that the agreement was one of the several steps taken by the government to meet its climate change commitments to reduce carbon intensity by 33-35 per cent by 2030.
Acting World Bank Country Director in India, Hisham Abdo, said that the programme will help India move further towards a more resource efficient growth path.
He said that the additional guarantee from the World Bank will enable the EESL to access new sources of commercial funding, diversify its investor base and establish a track record for future access to financial markets.