World Solar Bank in India
With Beijing taking the lead in creating Asian Infrastructure Investment Bank (AIIB) and the New Development Bank (NDB), the plan is to have the World Solar bank headquartered here, with India becoming its lead member by taking a stake in it.
Setting up a financial institution will add heft to India’s credentials as a clean energy champion that was bolstered by co-founding International Solar Alliance (ISA), the first treaty-based international government organization headquartered here.
This comes in the backdrop of 30 ISA member countries ratifying its framework agreement that opens up the membership of the first treaty-based international government organization headquartered here to all United Nations member countries.
According to the preliminary plans, the Bank may require total equity capital of $10 billion and a paid-up capital of $2 billion for setting up solar projects. The idea of a WSB has gained traction as many of the ISA member countries may have difficulty raising finances on their own.
India’s ministry of new and renewable energy may move the Cabinet note for inviting comments for the bank, to be set up to disburse around $50 billion to ISA member countries over the next ten years.
India has been trying to leverage ISA to land solar power project contracts in its member countries. A case in point being Sri Lanka, where state-run NTPC Ltd plans to set up a solar power park. NTPC also plans to help Gambia and Malawi develop solar power parks and is eyeing project management consultancy contracts in Sudan, Mozambique, Egypt, Uganda, Rwanda and Niger. India’s largest power generation utility recently got such contracts in Mali and Togo.