Cleantech projects attracting financial institutions

Cleantech projects attracting financial institutions
“We have the mandate to fund projects in the areas of renewable energy, energy efficiency, and water management,” said Avijit Bhattacharya, CEO, Tata Cleantech Capital
The energy and the water resources in the country are stressed and need significant investments to cater to future demand. Tata Cleantech Capital Limited (TCCL) has been formed to capitalise on the opportunity as well as enable the creation of clean energy and water infrastructure in the country. Avijit Bhattacharya talks what’s new about the cleantech projects and TCCL’s role to strengthen it.
How is the concept of financing cleantech projects catching up in India?Cleantech projects are attracting significant attention globally as well as in India, although it’s in early stage. Several institutions sponsored by the government, private financial institutions and banks are active in funding of cleantech projects. Cleantech sector specific PE funds are providing equity to many projects. Multilateral financial institutions are active both in the equity and debt funding of cleantech projects.
As many NBFCs got established in the infrastructure finance domain, do you foresee competing with them?We are already competing with such NBFCs. However, the opportunity is large, and there is room for all the serious players to build a meaningful business.
Could you brief us on your portfolio?We have funded wind, biomass, solar, and small hydro projects. We are also evaluating projects in the area of waste heat recovery and wastewater recycling. This portfolio today is a part of the larger Tata Capital Infrastructure Finance book.
Bringing money in to the business is always a tough task. How do you manage your portfolio?We have strong sponsors in Tata Capital and IFC Washington. We have also lines of credit from commercial banks.
According to you, what are the policy initiatives necessary to expedite investment in cleantech space?The current policy framework does encourage the setting up of renewable energy facilities, installation of energy-efficient equipment and wastewater recycling plants. However, many of the policies, like that of Renewable Purchase Obligation (RPO), are not strictly and uniformly enforced. Strict enforcement of the same will give the industry the much needed push and create confidence in investors and lenders.