The European Investment Bank (EIB) approved a EUR 200 million (~Rs.13.8 billion), 20-year loan to State Bank of India (SBI) which will be utilized to help develop large scale solar projects in India. The loan will support a total investment of EUR 650 million (~Rs.44.8 billion) in five different large-scale solar PV power projects and contribute to India’s National Solar mission and reduce dependence on fossil fuel power generation, stated a EIB release.

“The new cooperation between the SBI and the EIB will scale up investments in large scale solar power generation across India. Close cooperation between technical and financial teams from both institutions will ensure that world class projects are supported,” stated Mr. B Sriram, Managing Director, SBI.

Development banks have been showing heightened interest in India’s renewable energy sector. Recently the World Bank approved a $100 million loan for Rewa Solar Park in Madhya Pradesh and the Asian Development Bank provided a $500 million loan to the Power Grid Corporation of India to develop the Green Energy Corridor.

Image credit: CC BY-SA 3.0 Nick Youngson