Working to setting up commercial cooperation in renewable energy with developed and developing countries, the Ministry of New and Renewable Energy (MNRE) has firmed up international cooperation agreements with Germany and United States to establish “Green Energy Corridors” in the country.
Officials in the MNRE said the Ministry had been interacting with several developed and developing countries for cooperation in the renewable energy sector with a view to establish commercial cooperation for supplies of indigenously manufactured renewable energy products, systems and devices.
Under this major initiative, the German financial institution kfW has agreed to provide one billion euro loan. This is the follow up of the “Joint Declaration of Intent” between Germany and India on Indo-German Development Cooperation regarding the establishment of “green energy corridors” signed on April 11, 2013. The first line of the loan is expected to be delivered shortly.
In addition, under India-US Energy Dialogue, a memorandum of understanding (MoU) has been signed recently for promoting energy access through clean energy (PEACE). Under this initiative, Export-Import Bank of US intended to mobilise around $250 million EXIM Bank financing for clean energy access. Similarly, the European Union (EU) is helping Centre for Wind Energy Technology (C-WET), Chennai to estimate off-shore wind power potential and identify most suitable sites for establishment of off-shore wind farms in India. The Ministry has also established cooperation for initiating energy access in rural areas and promote access to clean energy in association with UNDP, World Bank and U.S..
Parliament’s Standing Committee on Energy headed by senior Samajwadi Party leader, Mulayam Singh Yadav has recently recommended that international finances despite being project based or otherwise should be of such scale so as to give the desired thrust to the sector for its proper development otherwise these activities could be financed domestically as the projects do not have higher financial stakes and are beneficial to the common man.