(MENAFN- KNN India)
New Delhi, Jul 18 (KNN) In a major boost to India's renewable energy sector, the Asian Development bank (ADB) has approved loans totalling USD 240.5 million to support the country's ambitious solar rooftop initiative.
This funding, announced yesterday, is earmarked for the second and third tranches of the Multitranche Financing Facility (MFF) Solar Rooftop investment Program.
The program, initially approved in 2016, has undergone restructuring to prioritize the deployment of residential solar rooftop systems. This strategic shift aligns with India's bold target of achieving 50 per cent of its electric power capacity from non-fossil fuel sources by 2030, a commitment that resonates with global efforts to reduce carbon emissions.
ADB's latest financial injection will primarily support the Prime Minister Surya Ghar program, which aims to accelerate the nationwide installation of rooftop solar systems.
The funding will be administered by two of India's leading financial institutions: the State Bank of India (SBI) and the National Bank for Agriculture and Rural Development (NABARD).
Breaking down the allocation, SBI will receive USD 90.5 million from ADB's Clean Technology Fund (CTF). NABARD, on the other hand, will manage a larger share of USD 150 million, comprising USD 80 million from ADB's ordinary capital resources and an additional USD 70 million from the CTF.
Energy experts view this initiative as a game-changer for India's power distribution network. Rooftop solar systems are expected to significantly reduce the strain on the grid by generating electricity closer to the point of consumption. This localised generation approach is anticipated to cut transmission losses and bolster overall energy security.
An ADB spokesperson emphasised that this funding underscores the bank's unwavering commitment to fostering sustainable development across Asia and the Pacific.
The institution, founded in 1966 and backed by 68 member countries, continues to pursue its dual objectives of eradicating extreme poverty and promoting resilience and inclusivity in the region.
As India forges ahead with its renewable energy agenda, the ADB's substantial financial support is poised to play a pivotal role in transforming the country's energy landscape.
With the solar rooftop program gaining momentum, India takes another significant step towards a greener, more sustainable future.
(KNN Bureau)
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