Japan International Cooperation Agency (JICA) signed a Loan agreement for a maximum amount of 10 Billion Japanese Yen (~ INR 660 Crore) with Tata Cleantech Capital Ltd (TCCL), a Non-Banking Financial Company (NBFC) for offering loans to Indian firms focussing on Clean Energy Projects.
- The loans will be provided through the Private Sector Investment Finance Scheme of JICA and is co-financing with the Sumitomo Mitsui Banking Corporation (SMBC).
- The loan will support TCCL to reduce the impact of climate change by offering green finance, which will contribute to decrease the emission of Green House Gas (GHG) in India.
- The agreement will help in achieving the Sustainable Development Goals 7 (Affordable and Clean Energy) & 13 (Climate Action).
Note – India is the world’s third-largest emitter of greenhouse gas (GHG) at present behind China and United states.
India’s Target in Paris Agreement
- India ratified the Paris Agreement in 2016. It has set a target to cut GHG emissions intensity of its GDP by 33-35% by 2030.
- In order to achieve this target, India is promoting mitigation measures such as installation of renewable energy (Solar Power, Wind Power), energy efficient equipment, and Electric Vehicles (EVs).
About Tata Cleantech Capital Ltd (TCCL):
TCCL, a joint venture between Tata Capital Limited (Tata Group) and IFC (World Bank Group), is a first-of-its-kind private sector green investment bank focusing on climate finance and advisory services. TCCL, which has been inducted into the Green Bank Network, is the premier Indian entity and the first private sector climate finance institution to be part of this network.
Green Bank Network:
The Green Bank Network connects leaders in clean energy finance, shares best practices and supports investment in clean energy solutions.
Recent Related News:
i.On January 8, 2021, a loan agreement was signed between India and Japan for JPY 30 billion (Rs 2,113 crore) to support India’s efforts at providing social assistance to the poor and vulnerable households severely impacted by the Covid-19 pandemic. It is named as Covid-19 Crisis Response Support Loan for Social Protection.
About Japan International Cooperation Agency (JICA):
President – Shinichi Kitaoka
Headquarters – Tokyo, Japan
About Tata Cleantech Capital Ltd (TCCL):
Managing Director – Manish Chourasia
Headquarters – Mumbai, Maharashtra
