SIDBI and IREDA get Rs 3,500-cr JICA loan

SIDBI and IREDA get Rs 3,500-cr JICA loan

The Japan International Cooperation Agency (JICA) on Tuesday signed agreements with the Small Industries Development Bank of India (SIDBI) and Indian Renewable Energy Development Agency Limited (IREDA) to provide 30,000 million Japanese Yen (approximately Rs 1,750 crore) under the Japanese Official Development Assistance (ODA) scheme to each of the two institutions to enhance energy availability in India.

The assistance will promote renewable energy generation and efficient energy use in Indian MSMEs (Micro, Small & Medium Enterprises), according to a release.

“These new loan agreements are aiming to provide comprehensive support to ensure stable energy supply and diversify energy resources. Since Japan is one of the most energy efficient countries, Japan’s knowledge will contribute to achieving the goal,” said Shinya Ejima, Chief Representative of JICA India Office.

The agreement was signed by Shinya Ejima, chief representative, JICA India, with N K Maini, deputy managing director (incharge), SIDBI and IREDA Chairman & Managing Director K S Popli.

The assistance is expected to further financial savings through efficient energy use and expand use of renewable energy to reduce dependence on fossil fuels.

The energy supply and demand gap in India has caused frequent power outages and is considered one of the impediments to India’s economic growth. JICA has been focusing on developing infrastructure, including upgraded and more efficient technology for power plants, transmission systems and distribution networks, and increasing efficient use of energy, especially in MSMEs.

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