According to a top official at World Bank, International Finance Corporation (IFC) has announced its plans to make heavy investments in India’s renewable energy sector. This move comes as the renewable sector is growing at a competitive commercial bids flowing in as compared to subsidy-driven growth rate in the West. With this announcement IFC has joined club of big players such as SunEdion, SoftBank, and Goldman Sachs to invest in India. Most of these companies are looking at making the most out of growing demand and production of wind and solar energy.
IFC's global head of infrastructure and natural resources, Sujoy Bose stated, the growth of renewable energy sector in India looks positive and thus has become IFC’s dream for making investments in projects that are contributing to country’s aim of reaching 1 lakh megawatts of renewable power.
IFC’s initial investment plan is estimated at US$5 billion. The company has already financed NSL Renewable and Mahindra Solar. Additionally, IFC has also issued a “green Masala bond” to raise a whooping equity of Rs.315 crore for making investments in private sector that are working towards addressing the issues of climate change.
Mr. Bose also emphasized, the projects must focus on tight maintenance and operation, cost feasibility, and heavy financing to make their efforts a true success in the coming comings. Only these efforts can make a significant difference to the country energy landscape. The latest investment made by IFC was in Mundra power project led by Tata. They invested US$400 million in the project is a black-fuel project in 2008 via debt and offered guidance on social and environment practices.