India, UK set up 240-m pounds fund for green energy

India, UK set up 240-m pounds fund for green energy

To encourage bilateral investment

India, UK set up 240-m pounds fund for green energy

Adding to the kitty of Rs 40,000 crore, National Infrastructure and Investment Fund (NIIF), India and the UK on Tuesday agreed to set up £240 million (approximately Rs 2,000 crore) fund to finance green energy.

The fund will help boost India’s rapidly growing energy sector. Both countries will contribute £120 million each to the fund, said Finance Minister Arun Jaitley, after the India-UK Financial Dialogue. The fund ultimately aims at raising £500 million.

“The Green Growth Equity Fund will be a sub-fund of NIIF. Our first major step in the fund has been taken and there is going to be a sub-fund. With the NIIF participating in it, this is going to be a Green Growth Equity Fund where both are going to make a contribution of £120 million and this will be financing the energy needs in India,” Jaitley said.

“Progress will be accelerated by starting the process of appointing a fund manager now with early market engagement via the publication of a blueprint with the aim to identify additional and complementary sectors for fund investments,” a joint statement, after the meeting between Jaitley and British finance minister Philip Hammond, said.

This was Hammond’s first visit to India after British Prime Minister Theresa May triggered the start of Brexit process. The two leaders also discussed the trade process after Brexit.

The two finance ministers also discussed efforts to make the Indian rupee more freely tradable in the world market and the proposal of National Highways Authority of India to issue masala bonds in London in next few months.
DH News Service

“Investment is a particularly important part of this economic and commercial partnership. The UK and India reaffirmed non-discriminatory treatment of foreign investors and committed to ensure an environment in which investors can continue to invest with confidence. The UK and India agreed to work together swiftly to encourage sustainable bilateral investment that benefits both countries, including through the Joint Working Group,” the Joint statement said.

They also welcomed IREDA’s plans to issue a green bond in London and list their masala bonds on the London Stock Exchange within six months.