Cheer up (Americans)! United States will be giving a loan of $250 million to an Indian company so that we can speed up on our solar and broadband projects.
The money will be coming from Overseas Private Investment Corporation (OPIC).
The amount will go in financing subsidiaries of ReNew Power Ventures Private Limited which shall be used to build power generation plants across the country.
The money will help India become a low carbon economy while helping the massive electrification drive undertaken by the ruling government.
ReNew Power Ventures Private Limited has been granted this amount as senior debt finance by the US government’s development financial institution.
Established in US in 1971, OPIC describes itself as an organization that helps US businesses “gain footholds in emerging markets, catalyzing revenues, jobs and growth opportunities”.
And this also proves why the US was so vehemently against India’s ambitious National Solar Mission’s stated objective that subsidies will be given on use of ‘made in India’ solar cells, solar modules and thin film technologies.
The US filed a case against India in the World Trade Organisation (WTO) alleging that the subsidies were against international trade norms.
It is another thing that US companies themselves get such benefits from the State.
On March 1, the WTO ruled against India delivering a blow to the country’s indigenous producers of the solar paraphernalia.