The Asian Infrastructure Investment Bank (AIIB) and the Asian Development Bank (ADB) have pledged Rs 14.6 billion to support the development of a 400MW solar PV plant in Gujarat.
The Asian Infrastructure Investment Bank (AIIB) has committed up to INR7.3 billion (approximately $88 million) to support India’s renewable energy ambitions through the ENGIE Solar Power Project. This significant investment is part of a co-financing effort with the Asian Development Bank (ADB) aimed at developing, constructing, operating, and maintaining a 400 MW solar photovoltaic (PV) plant in Surendranagar, Gujarat.
The project, which aligns with India’s push towards clean energy, involves a project finance senior debt facility totalling INR14.6 billion (around $175.9 million) provided jointly by AIIB and ADB in local currency. ENGIE, a global leader in low-carbon energy solutions, plans to invest EUR 22-25 billion between 2023 and 2025 to expand its renewable energy portfolio. This solar project in Gujarat is a vital part of ENGIE’s strategy to diversify its sources of long-term funding and attract additional capital.
This project underscores India’s commitment to clean energy development and is aligned with India’s goal to achieve 500 GW of non-fossil fuel generation capacity by 2030.
ENGIE India CEO and Country Manager Amit Jain highlighted the project’s importance: “In collaboration with ADB and AIIB, we’re bringing a landmark 400MW solar project to Surendranagar, Gujarat, marking a significant stride in India’s clean energy journey. This venture not only aligns with our green power goals but also catalyses local job creation, reinforcing our pledge to India’s non-fossil fuel future and firming our commitment to India’s energy transition.”
India, a Founding Member of AIIB, remains the Bank’s largest borrower. As of August 14, AIIB has approved 48 projects in India, with a total investment of $10.45 billion. This latest initiative underscores the ongoing collaboration between AIIB and India to drive forward the country’s renewable energy agenda.
