The U.S. Overseas Private Investment Corp. will meet next week to consider a $250 million loan to Infrastructure Development Finance Co., India’s second-largest lender to power plants and roads, to finance clean-energy projects.
OPIC’s board plans to meet on March 29 to make a decision on the loan, Timothy Harwood, spokesman for the Washington-based government investment agency, said in an e-mail to Bloomberg News.
The loan would allow IDFC to finance more renewable-energy and energy-efficiency projects that are suffering from a “large gap” in private funding because “foreign capital has declined and domestic capital is not adequate to meet demand,” according to a copy of the loan proposal posted on OPIC’s website.
IDFC would have to obtain prior approval from OPIC before funding wind farms, according to the proposal.
Mumbai-based IDFC has stopped approving new loans for coal power projects in India, which are facing delays and fuel-supply risks, and is focusing on clean energy, Pradeep Singh, managing director of its project finance unit, said in February.