Tata Capital, IFC in JV

Tata Capital currently holds 80.5 per cent in the joint venture — Tata Cleantech Capital Ltd — while the rest is held by International Finance Corp (IFC), a part of the World Bank group.

“Initially, we will be investing about US$16 million. We expect to see an investment of US$100 to 120 million in the next four to five years,” Tata Capital Managing Director and CEO Praveen P Kadle said.

Announcing the formation of Tata Cleantech, he said the new entity expects to register business of around US$750 million in the next four to five years.

Tata Capital and IFC inked an agreement for the joint venture, which is anticipated to officially start operations from April next year.

Tata Cleantech will offer financing and advisory services to small and medium enterprises (SMEs) and large corporates in India that are involved in climate change initiatives. “By helping establish India’s first green finance company, we will reach small and mid-sized companies that are committed to promoting clean technology,” IFC Executive Vice-President and CEO Lars H Thunell said.