The World Bank’s private sector lending arm, International Finance Corporation (IFC), sees a bright future in the Indian renewable energy sector.
By the end of this month, its investment in Indian renewable energy and clean technology sectors that began in 2009-10 would have exceeded $1 billion (R5,900 crore).
IFC follows a July-to-June calendar.
Pravan Malhotra, who leads IFC’s clean technology investment team in South Asia, said more than a third of this investment occurred this year alone.
This represents 38% of IFC’s total investment in South Asia. Globally, it has committed to invest 25% of its total portfolio in climate-related projects. According to Malhotra, the global financier sees increasing number of financially viable green projects in India.
“We significantly surpassed our investment target this year,” Malhotra said.
IFC’s investment in green business in India in 2012-13 jumped 77% to $362 million from $204 million a year ago. Key investment sectors include solar, wind, smart grid, energy efficiency, water, waste recycling, energy storage and biofuels.
Investment this year include $70 million (R415 crore) in 10 green technology start-ups including Azure Power and Applied Solar Technology in solar power, e-waste recycling firm Attero Recycling and smart grid technology firm Ecolibrium.
Malhotra said IFC is looking to invest in companies working in the area of rural electrification. IFC sees opportunity in rural electrification in India as about 40 crore people live without electricity.