The Asian Development Bank (ADB) has signed a USD 250 million loan agreement with the Centre to expand energy efficiency investments in India, according to an official statement.
The loan agreement to provide loan to Energy Efficiency Services Limited (EESL) was signed on Monday.
"The Asian Development Bank (ADB) and the Government of India on December 16, 2019 signed a USD 250 million loan to Energy Efficiency Services Limited (EESL) to expand energy efficiency investments in India that will benefit agricultural, residential and institutional consumers," according to the statement.
In addition to this, USD 46 million financing will be provided from the Clean Technology Fund (CTF) that will be administered by the ADB.
The ADB previously approved a USD 200 million loan to public sector company EESL in 2016 for demand side energy efficiency sector project that focused on efficient lighting and appliances.
EESL will also explore business models to generate greater public demand for e-vehicles to support India's current push for electric vehicles.
Besides the loan amount, a technical assistance (TA) of USD 2 million will be provided to support EESL in implementing the project, including a gender action plan, mobilising private sector participation in energy efficiency services, identifying new business opportunities, and transferring knowledge about successful models, the statement said.