India operating $2 billion LoC for solar projects in Africa

Considering the goal of more access of energy globally and speeding up economic development in rural, remote and island regions, India is operating US$ 2 billion line of credit by the MEA in Africa for undertaking solar projects in countries that have signed and ratified the International Solar Alliance (ISA) treaty.

To dedicate platform for cooperation, enhancement in bilateral relationships and in corporate relationship among the solar resource rich countries ISA was launched jointly by Prime Minister of India Narendra Modi and former President of France François Hollande on November 30, 2015 in the presence of Ban Ki Moon, Secretary General of the United Nation (UN).

This time also both India, France and other countries of ISA proposes to launch programme on scaling of Solar Mini Grids possibly in near future. While speaking to media here at Shastri Bhawan on Thursday, the Interim Director General of ISA Upendra Tripathy said that, "Indian firms have submitted expression of interest already. They would put mini grids equivalent to 78MWs under the soft loan related schemes for Africa." But the loan amount will be fixed and the interest will be usable, he also added.

Meanwhile India is also examining to allocate line of credit of US$1 billion for non-African ISA member countries under the same process.

There is also a proposal to build the Global Solar Fund of US $300 billion over ten years with contributions from the World Bank, ODA and also from Green Climate Fund to leverage it from the corporate sector especially, as a commercial project. The investment aims for financial assistance of ISA countries for next ten years. The risk guarantee premium may be 0.8% to 1%.

Moreover, ISA interim board proposed to form export groups in different sectors like, technology, policy making, education, finance especially to advise the empanelled countries on its programmes, activities in terms of standards, policies, technologies, power purchase agreements etc.

Amid a senior power official asserted that the ISA headquarters could be built at UAE but India is also pushing and all set to pass the tenders for the global infrastructure."It will be a collective decision," the official mentioned.