Yes Bank, a private sector lender in India, has tied up with European Investment Bank (EIB) and has jointly invested $400 million in a upcoming solar and wind project across the country.
Official reports state that Yes Bank is also eyeing investments in electric vehicles. Preliminary talks have taken place between the bank and auto manufacturers in the country. The investment in this segment will be much larger. Arun Agarwal, global head of international and institutional banking – Yes Bank, said that once the bank gets comfortable in the renewable sector, then they will have a presence across the value chain.
The current investment of $400 million will be directed to large-scale utility projects across India. Presently, Karnataka, Maharashtra, Rajasthan and Telangana will be recipients of the funding for these projects. Majority of the activities will focus on solar power keeping in mind utility scale projects.
The investment will help streamline financing for a number of projects for renewable energy to be constructed and operated by some of the leading Indian corporations and developers in the private sector.
According to the Managing Director of Yes Bank, Rana Kapoor, the bank is on track to achieve the targeted commitment to finance 5,000 MW of RE that was made in February 2015 at the first RE-INVEST Summit. The $400 million investment syncs up with Yes Bank’s COP 21 commitment to mobilise $5 billion by 2020 for Climate Finance.
According to EIB vice president, Andrew McDowell, this new finance will help significantly in harnessing solar energy and wind power. This will contribute to producing green energy while also creating thousands of jobs during the construction period. It will also help the renewable energy sector improve and strengthen technical and financial skills.
Yes Bank will handle the management of the joint finance program for the construction of wind farms and solar energy plants in India.