India enters into $100 m loan pact with World Bank

India enters into $100 m loan pact with World Bank

India on Monday signed a $100-million loan agreement with the World Bank for the establishment of large-scale solar parks in the country, which will enable increase solar generation capacity.

"The project will help establish large-scale solar parks and support the government's plan to install 100 Gigawatts (GW) of solar power out of a total renewable-energy target of 175 GW by 2022," the finance ministry said in a statement.

The project consists of two components -- shared infrastructure for solar parks at an estimated total project cost of $100 million. This includes $75 million in loan from International Bank of Reconstruction and Development (IBRD).

The IBRD is an international financial institution that offers loans to middle-income developing countries.

The loan will help India increase its power generation capacity through cleaner, renewable energy sources, and help the country achieve its solar energy goals by 2022.

The loan agreement was processed days after the World Bank improved India's ease of doing business by 33 ranks to 100.

The step was followed by global investor Moody's upgrading India's sovereign credit rating by a notch above the investment grade to Baa2.

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