Investment from the United States is expected to flow into India’s clean energy sector, after a visit to Washington by Narendra Modi, the Indian prime minister, which ended on Wednesday.
The countries launched a joint US$20 million clean energy finance initiative, which they said “is expected to mobilise up to $400m to provide clean and renewable electricity to up to 1 million households by 2020″.
They also announced a $40m solar finance programme, that “by providing needed liquidity to smaller-scale renewable energy investments, particularly in poorer, rural villages that are not connected to the grid, could mobilise up to $1 billion of projects”.
The US is “committed to bring to bear its technical capacity, resources and private sector, and is jointly launching with India new efforts to spur greater investment in India’s renewable energy sector”, according to a joint statement. The two countries revealed plans to cooperate to support India’s goal of deploying 175 gigawatts (GW) of renewable energy by 2022.
In a statement issued by the White House, the US announced “5.4GW of new commitments from US renewable companies that are seizing the opportunity to invest in India”.
India has come under enormous pressure to reduce its carbon emissions.
Initial work is to begin on six nuclear reactors in India, as the Nuclear Power Corporation of India and the US-based company Westinghouse work towards finalising a deal by June next year. The project is expected to help India reduce its dependence on fossil fuels.
“Once completed, this project will fulfil the promise of the US-India civil nuclear agreement, will create jobs in both the United States and India, and will advance our shared clean energy objectives,” the White House said.
Follow The National’s Business section on Twitter