NABARD, Tata Cleantech Signs Agreement for Rooftop Solar Units

The National Bank for Agriculture and Rural Development (NABARD) has announced that it has signed an agreement with Tata Cleantech Capital Limited (TCCL), which will develop solar rooftop units for clients in the commercial, industrial and residential housing segments.

As Direct Access Accredited Entity of Green Climate Fund (GCF), NABARD has supported the proposal of TCCL to generate more than 250 MW solar energy. The partnership is an attempt to unlock private sector initiatives for creation of rooftop solar power capacity across India with a loan of USD 100 million GCF for a period of 20 years. It will achieve an estimated reduction of emissions by 5.2 million tonnes of CO2 equivalent.

K Venkateswara Rao, Chief General Manager, NABARD and Manish Chourasia, Managing Director, TCCL signed the agreement in New Delhi on 28 February 2019 in the presence of H R Dave, Deputy Managing Director, NABARD and senior officials of TCCL.

Dave on this occasion said that the GCF line of credit is the first step towards financing private sector needs, which will help achieve Nationally Determined Contributions (NDCs) under the Paris Agreement.

Chourasia said it’s a blended financing instrument of about Rs 1625 crore, which has Rs 650 crore of GCF loan facility and 650 crore by TCCL funds and the remaining being the equity share by developers, deployed for development of solar rooftop units.   

India, which plans to achieve 40 percent of its electric power from non-fossil fuel sources by 2030, has advocated the global growth of solar energy through its leadership in the International Solar Alliance.