The government, World Bank and EESL inked a $220 million loan agreement and a $80 million guarantee pact to push energy efficiency programme in India.
The International Bank for Reconstruction and Development (IBRD) will provide $220 million in funding for energy-efficiency projects run by state-owned Energy Efficiency Services Ltd (EESL), reported The Mint.
Also the World Bank Group’s arm will provide a $80 million guarantee that will help cover re-payment risks and boost EESL’s efforts to raise funds for its program. According to an official statement, the guarantee is expected to leverage some $200 million in additional financing, to help EESL with its growing portfolio and future investment needs.
Sameer Kumar Khare, joint secretary in the department of economic affairs informed that the programme will help tackle the financing, awareness, technical and capacity barriers faced by new energy efficiency programmes and support the UJALA (Unnat Jyoti by Affordable Lighting for All) programme of the government of India.
Under the programme, EESL will deploy 219 million LED bulbs and tube lights, 5.8 million ceiling fans, and 7.2 million street lights, which will be supplied by private sector manufacturers and suppliers.
The government also plans to launch the Rs1.4 trillion solar power pumps scheme Kisan Urja Suraksha evam Utthan Mahabhiyan (KUSUM) to improve farmers’ income and reduce dependence on diesel pumps. KUSUM will start with 1.75 million off-grid agricultural solar pumps.