Business Standard

IFC to invest $20 mn in India's first clean energy fund Nereus

Related News

(IFC) will invest about $20 million in Nereus India Alternative Energy Fund, a $250-million fund that would focus on renewable and clean energy companies in India. It is the country’s first fund dedicated to renewable energy.

IFC’s proposed investment comes with a cap of 20 per cent of the fund’s total commitment in companies engaged in the development, construction, and operation of renewable and clean energy power generation assets. The fund would be based in Mauritius.

According to IFC, supporting India’s first renewable energy-dedicated fund would send a positive message to the fund investment community and the growing climate fund sector. Investment in this fund would help IFC mobilise investors and address the chronic power situation in India. IFC’s global expertise in would enhance the quality of the deals in this space and having IFC as an investor and a potential co-investor would ensure strict adherence to European standards and guidelines for quality assurance at the fund and portfolio levels.

Nereus’ portfolio would comprise seven to 10 investments of $15-$35 million each in equity and equity-linked securities, focusing on the development, construction, and operation of power generation assets.

According to IFC, India is the third-largest emitter of carbon dioxide. By 2030, India’s share of global emissions is expected to increase 60 per cent — the largest expected percentage increase of any nation.

The majority of new capacity is envisioned through coal-based ultra-megawatt power plants. Hence, there is an opportunity to shift from coal-based production to one based on distributed and renewable generation and transmission of power.

Showing distributed renewable generation in the country is profitable may spur the type of widespread private sector adoption that could help alter India’s emerging carbon emissions footprint.

Thirty eight per cent of the Indian population, or around 450 million, lack access to power.

Read more on:   
|
|
|

Read More

LIC pumps in Rs 2,317 cr in four PSU banks

The state-owned Life Insurance Corporation (LIC) has pumped in Rs 2,137 crore in four public sector banks through the preference share route.

Quick Links

More news from Finance Rss icon

ICICI Bank Q2 net up 15% even as bad loans rise

The net interest income grew by 15% to Rs 4,657 crore

Bank credit dropped in 1st half of October

Though credit demand has been tepid for several quarters, this fortnightly dip came just ahead of the Diwali week, the main festive season for ...

Rajan rate-cut bets spur Asia's biggest swap drop

The fixed payment to lock-in rates for a year using the derivatives fell 37 basis points this month, the most since September 2013, to 8.10%

Back to Top