- This is World Bank's biggest solar aid for any country
- PM Modi is banking on solar energy for power, to fight climate change
- Renewable energy industry could generate opportunities worth $160 billion
PM Modi is banking on India's 300 days a year of sunshine to generate power and help fight climate change, rather than committing to emission cuts like China.
The World Bank loan is the organization's biggest solar aid for any country and comes as India has set a goal of raising its solar capacity nearly 30 times to 100 gigawatts by 2020 and is attracting mega investment proposals from top companies and institutions.
"Prime Minister Modi's personal commitment toward renewable energy, particularly solar, is the driving force behind these investments," World Bank President Jim Yong Kim said in a statement released after he met the PM.
India is the largest client of the World Bank, which lent it around $4.8 billion between 2015 and 2016.
India wants the share of non-fossil fuel in total installed power capacity to jump to 40 percent by 2030 from 30 percent currently, but there are challenges including weak finances of state distribution companies forced to sell subsidised power, difficulties hooking up solar projects to grids, and access to affordable capital.
Still India reckons its renewable energy industry could generate business opportunities worth $160 billion this decade, making it a lucrative market that has already attracted big global players such as Japan's Softbank Corp and Taiwan's Foxconn.
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