June 30, 2015, New Delhi: In an effort to scale up India’s renewable energy capacity, the U.S. Agency for International Development (USAID) today signed a memorandum of understanding (MOU) with IIFCL Asset Management Company Ltd. (IAMCL) to provide technical assistance for increasing investment in renewable energy in the country by $665 million. The MOU was signed by Manpreet Anand, Deputy Assistant Administrator, USAID Asia Bureau, and E. S. Rao, CEO of IAMCL at their office in New Delhi.

As part of the agreement, USAID will provide technical assistance to IAMCL to enhance its institutional capacity to access financial resources from a new class of institutional investors in international markets. The focus of the activities will be on designing, developing, and deploying innovative financing mechanisms that will improve funding for India’s renewable energy sector. In particular, USAID will assist IAMCL in the creation of Green Bonds and Infrastructure Debt Fund-Mutual Fund worth $665 million.

“In a country where 300 million people still live without electricity, this MOU will prove to be a vital step toward improving a student’s ability to study longer; allowing an entrepreneur to extend commerce beyond sunset, helping a mother to give birth more safely, and making our streets safer for all. This MOU will enable India to advance its low-carbon growth and achieve national energy security,” Manpreet Anand said after signing the MOU.

The Government of India recently proposed adding 175 Gigawatts of renewable energy by 2022. The ambitious plans by the government for clean energy sources will require the dynamic design and implementation of policies along with new sources of finance to meet larger investment requirements. This MOU between USAID and IAMCL will help drive clean energy development in support of the Government of India’s renewable energy targets.