BRICS NDB sanctions $250 million for India's renewable energy scheme

India was among the first four countries to get a loan from the newly established BRICS (Brazil, Russia, India, China and South Africa) New Development Bank (NDB) which gave a $250 million funding to Canara Bank for a renewable energy project.

The China-based NDB has approved four green renewable energy projects from India, China, Brazil and South Africa entailing Bank financing of $811 million.

The project from India entails provisioning of a multi-tranche loan of $250 million to Canara Bank for lending to renewable energy ventures.

The project will result in generation of 500 Mw of renewable energy and savings of about 800,000 tonnes of carbon emissions.

"New Development Bank sanctioned 4 loans including a loan of $250 million for a renewable energy scheme in India. Good beginning," tweeted Shaktikanta Das, secretary for economic affairs.

This loan is the first such loan from the development financial institution, according to officials.

The NDB was formed by the BRICS leadership with the objective of funding infrastructure projects in emerging economies and to meet the aspirations of hundreds of millions of people through sustainable development.

The NDB, which commenced operations in July, 2015, is headquartered in the eastern Chinese metropolis of Shanghai and its initial authorised capital is $100 billion.