Asian Development Bank (ADB) Tuesday said it has inked an agreement to invest USD 50 million in solar energy project developer Avaada Energy Pvt Ltd to help the company scale up rapidly.
The investment will come equally from ADB’s Ordinary Capital Resources and Leading Asia’s Private Infrastructure Fund (LEAP).
LEAP is a funding arrangement provided by Japan International Cooperation Agency (JICA) which is administered by ADB.
Supporting renewable energy capacity enhancement by way of debt and equity is a key focus area of ADB’s private sector strategy. The investment in Avaada will enable the company to expand its renewable energy capacity and send positive signals to global investors to continue supporting the growth of renewable energy in India.
The project will contribute to the strategy of the government to increase the share of renewable energy generation capacity from about 20 per cent in 2018 to 40 per cent by 2030.
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