World Bank plans $100-million guarantee scheme for solar rooftop projects

The World Bank plans to introduce a $100 million credit guarantee scheme to support India’s rooftop solar programme. The scheme will allow micro, small and medium enterprises to avail of concessional debt financing for setting up rooftop solar units. The World Bank is collaborating with the State Bank of India to implement a $648 million financing and technical assistance programme for solar rooftops.

The Power Finance Corporation (PFC) and REC Limited will provide a loan of Rs 40.58 billion for the strategic 600 MW hydropower project being constructed at Trashi Yangtse in Bhutan. The two companies signed an MoU with Kholongchhu Hydro Energy Limited on March 9, 2021 for financing the project. The project is proposed to be funded on a debt-equity ratio of 70:30. As per the MoU, REC will extend a rupee term loan of Rs 20.29 billion and the balance debt will be extended by PFC (Rs 20.29 billion), NPPF, Bhutan (Rs 2 billion) and the Bank of Bhutan (Rs 2 billion). The project is being executed under an intergovernmental agreement signed between India and Bhutan in April 2014 for the implementation of four hydroelectric projects in Bhutan through a joint venture to be formed by PSUs of the two countries.