International Finance Corporation plans to invest in Tata Cleantech Capital Ltd. IFC’s plan is to invest in TCCL’s green bond issue. This would help the company expand their long term infrastructure funding, which is also environment friendly.
The money that is going to be raised through green bonds will be used towards financing projects, which are environment friendly and Tata Cleantech Capital will be using the International Finance Corporation’s investment for financing their projects related to solar, wind and other climates.
The amount of this investment is said to be about forty million US dollars. This hefty sum would help Tata Cleantech Capital immensely in their goals in the coming future.
The investment arm of the World Bank said in the disclosure of the investment that this proposed plan of investment is going to lead to an immense reduction of emissions of greenhouse gases as there would be an incremental addition to the generation capacity of projects that use renewable energy.
As the Government of India has already made hefty plans for increasing their renewable energy generation capacity in the next decade and many other countries have followed that path like a ripple effect, this investment would allow Tata Cleantech Capital to invest in new projects of renewable energy power generation. Non-fossil fuels are the future of power in the world and IFC is doing a smart move in investing in them more.
Tata Cleantech Capital is already a joint venture between IFC, which holds the interest of about 19.5 per cent in the company and Tata Capital that holds the rest of the 80.5 percent interest in the company. This non-bank lender is known to provide advisory and finance services in the renewable energy space.
International Finance Corporation said that the company would subscribe to the green bonds of TCCL in about one or more than one branches. This funding is long term and it is going to help supplement the company’s self-mobilization of funds that are long term from various other sources too.
TCCL, the Mumbai-based company, started in the financial year 2013-14 and currently by the end of March 2017 the company has about Rs2400 Crore assets under their management.
With the speed at which renewable resources are now being used, the dependence of India on imported fossil fuels, which are expensive, would reduce. Due to this, India’s emissions would also reduce. The country has planned a target to reduce their intensity of emissions of their GDP by 33-35 percent by the end of 2030 as compared to the 2005 level.