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To harness clean energy, India to seek foreign funds

According to reports, Taking a step ahead in its fight against climate change, India has selected four projects to seek funding from the international Clean Technology Fund (CTF) supported by the World Bank and the Asian Development Bank. The fund has been initiated to help the developing countries adopt thesustainable growth pathway in an attempt to check carbon dioxide emission growth. India aims to maintain its economic growth rate of 8% in the next decade and will adopt cleaner technologies to achieve its goal.

In the first set of four projects, the government has identified improving regulatory mechanism for hydro projects in Himachal Pradesh, augmenting national mission on energy efficiency and solar mission and partial risk guarantee for energy efficiency technologies.  

The environment ministry believes that hydro power potential of Himachal Pradesh can be increased to 70% from the present 31% in the next decade by improving the existing regulatory and approval process. For this, the ministry is seeking loan from the World Bank.

“The intent would be to implement a framework that would spur hydropower development from the current level of 31 % to 70 %, within 10 years, which would be a remarkable achievement that could serve as a model for other hydropower states in the country and in South Asia,” said the government’s policy document on clean technology fund.

The government wants money from the fund to provide concessional financing to support specific programmes under the National Mission for Enhanced Energy Efficiency. The money will be utilised to support efficient equipment programmes under which India plans to develop highly energy efficient fans having a market of 10 million every year.

As the cost of energy efficient fans would be high, the government intends to use the CTF to enable the consumers to get this electrical appliance at  an affordable rate.  “The financing will have significant transformative impact,” a ministry document said.  To encourage players to develop efficient appliances for consumers, the government will start risk guarantee fund. It believes these appliances have a potential to save 10,000 MW of power every year.

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