Japan International Cooperation Agency (JICA) signed a Loan Agreement for a maximum amount of JPY 10 billion with Indian Non-Banking Financial Company, Tata Cleantech Capital Limited (TCCL) to support the company to offer loans to businesses across India that focus on renewable energy generation, e-mobility solutions as well as energy efficiency, to help mitigate the effects of climate change by reducing the emission of greenhouse gas (GHG) in India following the Green Loan Principles[ii]. This loan will be provided through Private Sector Investment Finance scheme of JICA and is co-financing with the Sumitomo Mitsui Banking Corporation (SMBC).
The Government of India has ratified the Paris Agreement in 2016, in which India has committed to cut GHG emissions intensity of its GDP by 33-35 per cent by 2030. In order to achieve the target, the Government of India is promoting mitigation measures such as installation of renewable energy (solar power, wind power etc.), energy efficient equipment, and electric vehicles (EVs).
JICA's loan will support TCCL to mitigate the impact of climate change by offering green finance, which will contribute to decrease the emission of GHG in India. It will also contribute to SDGs (Sustainable Development Goals) Goals 7 and 13. JICA will continue its support for climate change initiatives in the world and continue to mobilize private finance for this sector.
Manish Chourasia, Managing Director, Tata Cleantech Capital Limited, said: "The partnership with JICA is a significant milestone for TCCL that will enable us to accelerate the pace of transition to clean energy in India. Our focus will continue to be to fund & support projects across Renewable Energy, E-mobility & Energy Efficiency sectors. Our aim is to channelize and mainstream Climate finance in India to help mitigate the impact of climate change."