UK-based development finance institution CDC Group has given a $30 million (about Rs 220 crore) lending facility to Tata Cleantech Capital Ltd (TCCL), the companies said in a statement.
The proceeds will be used to offer loans to businesses that focus on e-mobility solutions as well as water and energy efficiency.
The statement said that CDC’s facility will enhance efforts to avoid greenhouse gas emissions by increasing the deployment of money to energy efficiency and e-mobility solutions.
This will also reduce freshwater consumption as the facility will be used to fund water-efficiency and wastewater-treatment projects. The objective is to support climate change mitigation in India.
“TCCL will help develop the nascent cleantech sectors: e-mobility, energy efficiency and water efficiency in India through CDC’s directed green lending facility,” said Manish Chourasia, managing director, TCCL.
“Our partnership with TCCL will enhance resource availability and efficiency for people across the country, helping to boost CDC’s long-term objective of supporting climate-resilient communities and businesses,” said Srini Nagarajan, managing director and head of Asia at CDC.
TCCL, a green finance institution, is a joint venture between Tata Capital Ltd and World Bank’s International Finance Corporation (IFC).
In 2019, it secured a $100 mn line from Green Climate Fund to develop the rooftop solar market in India.
TCCL has so far financed more than 220 projects and contributed to the development of 7.7 gigawatt (GW) renewable energy. Its loan portfolio is worth S$850 million.
CDC Group supports sustainable and long-term growth of businesses in South Asia and Africa. It has investments in over 1,200 businesses in emerging economies and a total portfolio value of $6.2 billion.
This year CDC will invest over $1.5 billion in companies in Africa and Asia with a focus on fighting climate change, empowering women and creating new jobs and opportunities for millions of people. It is funded by the UK government.
Recently, agri-tech startup Ergos Business Solutions Pvt. Ltd raised Rs 22.5 crore ($3 million) from CDC.