U.S. Exim Bank steps up investment for Indian projects

Stepping up its investment for Indian projects in the renewable energy sector, the Export-Import Bank of the U.S. on Monday said it had sanctioned loans worth $1.4 billion (about Rs.6,300 crore) for companies like Azure Power and Punj Lloyd in the renewable energy sector.

Addressing a press conference here, U.S. Exim Bank Chairman Fred P. Hochberg told reporters here that Azure Power would get financing for importing thin-film photovoltaic modules from Arizona-based First Solar Inc., a deal worth $16 million for a 5 MW solar power project in Rajasthan.

Similarly, Punj Lloyd was being provided with a $9.2 million long-term loan to import similar equipment from Colorado-based Abound Solar for constructing a 5 MW solar plant also in Rajasthan.

The bank, he said had also in the pipeline solar projects worth $500 million that would generate an estimated 315 MW. “India has set ambitious goals to increase solar-energy production and is creating incentives to encourage solar companies to develop this market. We are working with U.S. exporters to make sure that they have the competitive financing they need to participate in these important initiatives,” he added.

“During the first nine months of fiscal year 2011, Exim Bank approved 173 transactions totalling $1.4 billion in financing of U.S. exports to India which support over 10,000 U.S. jobs,” he said. The financial year for the bank starts in October.

The national solar mission envisages production of 20,000 MW of solar power in the country over the next decade. “We expect India to be the largest market for us by the end of the financial year 2012,” Mr. Hochberg said.