YES Bank and European Investment Bank, a long-term lending institution of the European Union, have joined hands for a USD 400 million fund for renewable energy projects in India over 15 years. The European bank will contribute half of the fund with the rest coming from YES Bank, project promoters and other financial institutions.
YES Bank will also manage the co-financing programme for construction of new solar plants and wind farms across the country.
A joint press release issued by the banks said solar projects in Rajasthan, Telangana, Karnataka and Maharashtra had been identified to be given funds under the initiative. Certain wind and some more solar projects are under examination, the release said.
The Narendra Modi government aims to have an installed capacity of 175 GW of power based on renewable sources by 2022. This would comprise 100 GW of solar, 60 GW of wind, 10 GW of biomass and 5 GW of small hydropower capacity coming from units of up to 25 MW capacity.