The loan would be provided through the private sector investment finance scheme of JICA and is co-financing with the Sumitomo Mitsui Banking Corporation (SMBC). TCCL is a joint venture between Tata Capital Limited of the Tata Group and International Finance Corporation, an arm of the World Bank. It is a first of its kind private sector green investment bank with focus on climate finance and advisory services.
JICA’s loan will support TCCL to mitigate the impact of climate change by offering green finance, which will contribute to decrease the emission of GHG in India, said a company statement. It will also contribute to SDGs (Sustainable Development Goals) Goals 7 and 13. JICA will continue its support for climate change initiatives in the world and continue to mobilize private finance for this sector.
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Manish Chourasia, managing director, Tata Cleantech Capital, said, “The partnership with JICA is a significant milestone for TCCL that will enable us to accelerate the pace of transition to clean energy in India. Our focus will continue to be to fund & support projects across renewable energy, e-mobility and energy efficiency sectors. Our aim is to channelize and mainstream Climate finance in India to help mitigate the impact of climate change.”
In 2019, TCCL secured a $100 million line of credit from Green Climate Fund to develop a roof-top solar market in India. TCCL is the first private sector climate finance institution to be part of Green Bank Network, a membership organization formed to foster collaboration and knowledge exchange among green banks, enabling them to share best practices and lessons.
TCCL has so far funded development of 9.8 GW renewable energy which has averted annual carbon emissions of 15.1 million tonne. TCCL has a loan portfolio of $850 million and has a domestic credit rating of AAA from CRISIL.
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