Overseas Private Investment Corporation (OPIC) has sanctioned India a debt for $421 million last week for its solar and broadband projects. Financing from the development finance institution of the US Government has been announced in a bid to transform India into a low carbon economy and expand the internet infrastructure.
The US agency mobilizes private capital to help solve critical development challenges while advancing U.S. foreign policy and national security objectives. It supports 160 developing and post-conflict countries around the world in producing important economic, environmental and developmental benefits.
OPIC has approved $250 million senior debt financing to subsidiaries of ReNew Power Ventures Private Ltd. The fund will be utilized in developing 400 megawatts of new solar renewable power generation plants in India across multiple projects, reports Economic Times.
The innovative financial scheme is expected enable ReNew helping India in achieving its goal to gradually adapt a low carbon economy. The scheme is also predicted to efficiently streamline the funding to the projects for the new energy products, according to a report published in The Dollar Business. The US development finance institution has also sanctioned $171 in financing to Tikona Digital Networks. The financing aims to support the expansion of Tikona's low-cost and rapidly scalable wireless broadband networks across India, reports The Statesman. India has reportedly been lacking widespread broadband service availability due to poor wire-line infrastructure. Increased broadband penetration is directly linked to gross domestic product (GDP) growth in developing countries, suggests a recent study. The study revelation has apparently inspired OPIC to help in developing network infrastructure. OPIC support to Tikona is expected to encourage the adoption of internet among residential and commercial consumers. Connecting more people with the internet will eventually advance the foundation for social and economic development. Members of the OPIC board have extended their support in the form of $975 million for the new five private sector lead developments projects. The recently approved projects span the spectrum of positive impacts that OPIC's development finance may spark, expects Elizabeth Littlefield, OPIC President and CEO. She also adds that OPIC finance will exert its impact upon lives across the developing world while transforming focus from Southeast Asia to India.
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