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A framework loan of up to USD 200 m to part-finance renewable energy projects in India
This operation concerns a framework loan to support the construction and operation of solar photovoltaic (PV) power plants and wind farms in India. The exact schemes to be financed remain to be finally agreed and are expected to be located in various Indian states. The operation contributes to the addition of clean, renewable energy generation to a power system that it is dominated by coal-fired generation and suffers from significant capacity shortages.
The operation will focus on PV projects and wind farms with in principle limited environmental and social impact. The Bank will require the promoter to ensure that implementation of the projects will be done in accordance with the Bank's environmental and social standards.
The project may include wind farm allocations that would be subject to a local assembly requirement related to the wind turbine nacelles. The required local component appears to be well below the level at which parts can naturally be sourced locally and at economic prices. A more detailed assessment will be performed by the Bank during appraisal, verifying that the project meets the Bank's criteria of economy and efficiency.