AIIB to invest $100 mn for India’s renewable projects

Beijing-headquartered Asian Infrastructure Investment Bank (AIIB) expects an annual private investment worth USD 100 million a year in solar and wind projects in India from next month.

“AIIB expects to tap as much as USD 100 million green and renewable projects in India from next month,” bank's Director General (Investment Operations) Pang Yee Ean said.

“In a month’s time, you will see the approval of projects in the Renewable Energy sector (in India),” said Pang after addressing the South Asian Diaspora Convention on Saturday.

“We should be consistently doing wind and solar projects up to USD 100 million each year… I would say each year there would be a USD 100 million in the private sector for renewable projects.”

“More importantly, some of these projects are by the private sector,” he said, underlining the importance of private investment to build resilience in infrastructure development.

Pang also expected the private investments in the renewable energy sector in India as foreign direct investment, relieving the Indian government of project financing challenges.

Describing India as a "vibrant private sector market", Pang said private investments validate business models of infrastructure and ensure it is economically sustainable.

Conceding that AIIB was a "late bloomer" in the renewable energy sector, Pang sought to assure that in coming years, more can be expected from the bank, which has till date invested USD 2.844 billion in Indian projects.

There will always be a steady stock of projects in the infrastructure – roads, rural connectivity, water supply and sanitation among others.

“These are stable stock of projects,” he emphasised.

Asked about AIIB investment projections, Pang said the bank has always based investment on quality of projects.

“We don’t do a country projection for each country, neither do we put a cap on each country (investments),” he said on the sideline of the convention organised by the Institute of South Asian Studies from November 15 to 17.

AIIB’s big-ticket investments include USD 500 million in Mumbai Urban Transport Project 3, USD 455 million in Andhra Pradesh Rural Roads Project and USD 450 million in AP Urban Water Supply Project.