International Finance Corporation (IFC), a World Bank group member, on Wednesday extended a seven-year long-term loan of Rs 1,000 crore to Aditya Birla Finance Limited (ABFL), a holding company of the Aditya Birla Group.
Aditya Birla Capital’s NBFC will use the proceeds to finance renewable energy projects in the country. The government plans to increase the country's renewable energy capacity to 175 GW, comprising solar, wind, biomass and small hydro by 2022.
Ajay Srinivasan, Chief Executive, Aditya Birla Group, said in a release, “This is not just about a loan, but also about being able to access the expertise that IFC has in this area and together making a small difference to the energy requirements of our country.”
With this funding, IFC will help ABFL develop its renewable energy programme by providing longer-tenor financing, knowledge sharing, and setting of standards.
“India is yet to have its entire population covered by 24X7 electricity, which is a critical development gap and we want to help bridge in a manner that is environment friendly. Aditya Birla Capital’s business mix and market presence are aligned to our priorities and we consider the company a potential strategic partner in development,” said Jun Zhang, Country Head, IFC India.