According to reports, Tata Capital today said it would enter the area of climate change with the formation of Tata Cleantech Capital Limited (TCCL), in association with International Finance Corporation (IFC), a member of World Bank Group.
TCCL would provide financing and advisory services to small and medium enterprises (SMEs) and large corporates in India that are engaged in climate change initiatives.
Tata Capital Limited is registered with the Reserve Bank of India (RBI) as a Systemically Important Non Deposit Accepting Non-Banking Financial Company.
IFC, a member of the World Bank Group is the largest global development institution focused exclusively on the private sector.
IFC will invest up to 19.5-per cent stake in the equity capital of TCCL, with the rest of the capital being initially contributed by Tata Capital.
The company will undertake to provide financing for these climate change initiatives after it receives NBFC registration from the RBI.