The EU`s assistance comes as part of its "strategic partnership" with India and will be made available by the European Investment Bank (EIB) to ICICI Bank, India`s largest private bank, in the first-ever cooperation between the two financial institutions.
It is intended to provide long-term financing for investments on a number of electricity generating projects, especially in the areas of solar photovoltaic, biomass and onshore wind power by private companies, thereby making a contribution to India`s efforts to reduce greenhouse gas emissions, the EIB said on Monday in a press statement.
The loan is being provided under the EIB`s Energy Sustainability and Security of Supply Facility (ESF), a 4.5 billion euro programme designed to reinforce the EIB`s goal of promoting renewable energy and energy efficiency in non-EU countries.
This is the first cooperation between the long-term financing institution of the 27-nation EU bloc and India under the ESF programme, the statement said.
The ESF is used when the bank does not need a credit guarantee from the EU because the recipients are investment-grade countries or where appropriate security can be provided.