According to reports, the International Finance Corporation (IFC) has offered to support the State Government in formulation of State-specific renewable energy policy with focus on solar and small hydro power. The IFC, a member of the World Bank Group, has also extended support in formulating regulation for an accounting framework for small grid-connected renewable energy.
The international funding agency will facilitate private sector transaction leading to investments in renewable energy to achieve energy efficiency, programme manager of IFC Investment Climate Advisory Service Dhruba Purkayastha said in a letter to the Energy department.
The IFC officer has requested the State Government to make necessary amendments in the mutual agreement for incorporating these scope of works.
The State Government has launched Odisha inclusive growth partnership programme under cooperation agreement with the IFC.
Through a three-year partnership, the IFC is working with the Government to streamline regulation for investment, identify areas for improvement and tap opportunities in the private sector.
The State Government has recently approved a proposal for installation of solar panels on rooftops of all government establishments in Bhubaneswar and Cuttack under public-private partnership (PPP) mode. It has also directed the implementing agency to sign agreements with the IFC for the purpose.
Intimating the Government approval to Odisha Hydro Power Corporation Ltd (OHPC), the Energy department has asked the State PSU to take necessary steps for signing the agreement between Green Energy Development Corporation (GEDCOL), a wholly-owned subsidiary of OHPC and IFC for project financing. The solar project is aimed at reducing ever-increasing power bills in Government offices.
The other areas identified under the cooperation agreement include agri-business which aims to facilitate investments in food processing and warehousing, storage and cold chain facilities.
In agri-business, the IFC will enhance its focus on increasing rural incomes, building a commercial agriculture base for food security, creating sustainable farming opportunities and diversifying exports, official sources said.
The State Government has also sought assistance of the overseas funding agency to identify areas of tourism potential to develop them as tourism destination.
While in working areas of financial inclusion, the IFC will assist the State in streamlining the tax structure.