The State Bank of India (SBI) and The World Bank (WB) signed agreements for a facility of USD 625 Million for supporting Grid Connected Rooftop Solar Program. The agreements were signed by Mr.KarnamSekar, Deputy Managing Director, State Bank of India and Mr.OnnoRuhl, Country Director, World Bank India in the presence of Mr.ArunJaitley, Finance Minister, Mr.PiyushGoyal, Minister of State with Independent Charge for Power, Coal, New and Renewable Energy and Mr. Jim Yong Kim, President, World Bank Group.Mr.Shaktikanta Das, Secretary, Department of Economic Affairs, Ministry of Finance, Mr.UpendraTripathy, Secretary, Ministry of New & Renewable Energy and MrsVarshaPurandare, MD & CEO, SBI Capital Markets Ltd were also present on the occasion.
This facility will help SBI in financing Grid Connected Rooftop Solar Photovoltaic (GRPV) projects at very competitive rates. This in turn will catalyse the market and support Government of India to faster achieve its target to generate 40 GW of electricity from widespread installation of rooftop solar photo-voltaic installation. The eligible beneficiaries under the facility would be developers, aggregators and end-users, who wish to set up solar PV projects mainly on commercial, industrial and institutional rooftops. Through this initiative at least 400 MW solar capacity will be created across the country.
The variety of financing mechanisms on offer under this program will represent a major innovation for the rooftop market. These solar PV installations will provide clean, renewable energy, and reduce greenhouse gas emissions by displacing thermal generation. The scope of the Program also aims at improving the investment climate for solar PV, and increase the `Ease of Doing Rooftop Business’ through Technical Assistance to strengthen the capacity of key institutions, and support the development of the overall solar rooftop PV market. Mr.OnnoRuhl said that “With around 300 days of sunshine every year, India has among the best conditions in the world to harness solar energy. The rapid expansion of solar power can improve the quality of life for millions of Indians, especially for its poorest citizens.
It can also create thousands of jobs in the solar industry and underpin progress in all areas of development, helping the country fulfil its dream of becoming the ‘India of the future”. SBI Capital Markets Ltd., a subsidiary of SBI, was the advisor for structuring and setting up the facility.