India’s need of $500 million for its solar projects may be fulfilled by Asian Infrastructure Investment Bank (AIIB).
AIIB, the China-led multilateral investment bank, has an authorised capital of $100 billion which it plans to invest in global clean-energy initiatives, and could fund eco-friendly investment projects to avoid allegations of promoting pollution. India, the bank’s second biggest shareholder after China, fits the bill here.
Tarun Kapur, joint secretary, Ministry of New and Renewable Energy, said: “In about six months, funds could start flowing from AIIB.” The interest on the loan is expected to be 2 to 2.5 percent and would be linked to LIBOR for a term of over 15 years.
Headquartered in Beijing, AIIB’s expected funding can back Prime Minister Narendra Modi’s plan of expanding installed solar capacity to 100 gigawatts by 2022.