Japan International Cooperation Agency (JICA) signed agreements with the Small Industries Development Bank of India (SIDBI) and the Indian Renewable Energy Development Agency Limited (IREDA) to provide Rs 1,750 crore Japanese Official Development Assistance (ODA) to each of the two institutions to enhance energy availability in India.
The project, “New and Renewable Energy Development Project (Phase 2)” aims to support power producers invest in new renewable energy projects such as wind and, solar power through IREDA.
The assistance will help in financial savings through efficient energy-use and expand use of renewable energy.
Since 1988, JICA have provided more than 200 billion Japanese Yen to SIDBI through 8 loan agreements to facilitate development of MSMEs.
This is the second assistance from JICA to IREDA, following a30 billion Japanese Yen assistance in 2011.The current agreement with SIDBI is the third phase of JICA’s assistance.
JICA supports India’s efforts in mitigating energy shortage by focusing on developing infrastructure like upgraded and efficient technology, transmission systems and distribution networks, as well as increasing efficient use of energy in MSMEs (Micro, Small & Medium Enterprises).
The “Micro, Small and Medium Enterprises Energy Saving Project (Phase 3)” will enable SIDBI fund the MSMEs to achieve the goal of a 20percent improvement by 2017 in energy efficiency.
These loan agreements will provide comprehensive support for stable energy supply and diversify energy resources. Japan is one of the most energy efficient countries, and their knowledge will contribute to achieving the goal, said, Ejima, chief representative, JICA India Office.