US government approves $340 million investment loan for projects in India

NEW DELHI: The Government of United States has, with the aim of uplifting under-served communities, approved loans and investment worth $340 million for Indian firms and organisations. The initiative by the US government comes at a time when the world is grappling with the Covid-19 crisis and various countries around the world are facing or are on the brink of facing an economic crisis.

A major proportion of these loans were part of the $1 billion in investments approved by the US International Development Finance Corporation (DFC)’s Board of Directors to advance and facilitate development in Africa, Latin America, the Indi-Pacific and other emerging markets around the world.

According to a statement by the US Embassy in India, the projects that will benefit from the loans will majorly support developing countries reeling from the impact of Covid-19. The first transactions of the loans will use equity and technical assistance, it said.

As part of the initiative, ReNew Power has been granted a $142 million loan to construct and operate a 300 MW solar power plant in Rajasthan to advance India’s energy security. Another $50 million will be made available to Sitara Solar Energy Private Limited to build and operate a 100 MW solar power plant in Rajasthan to further enhance power supply in India.

Up to $371,000 in technical assistance will also support Milk Mantra to produce and sell dairy products in eastern India. This technical assistance is intended to enhance the impact of an approved DFC loan to the project by sharing the costs of services.

According to Adam Boehler, CEO, DFC, the investments made as a result of the $1 billion loan will help uplift some of the most underserved countries and economies in the world. This set of investments also marks one of the largest tranches approved by the board of directors of DFC. The projects approved under the initiative will help strengthen health systems, bolster food security and support other impactful development outcomes. Several projects expand access to financial services for women, small businesses, and other underserved groups.