News

ISA’s risk-mitigation mechanism to be in place by December 2018

Twesh Mishra New Delhi | Updated on January 09, 2018 Published on December 11, 2017

Upendra Tripathy, Interim Director-General, ISA

International Solar Alliance meets in Paris to define roadmap for raising $1 billion

The International Solar Alliance has begun working on a Common Risk Mitigation mechanism and is aiming to gather $1 billion under it by December 2018.

“There is a task force headed by the Terrawatt Initiative (TWI) with members from the World Bank Group, The Currency Exchange Fund (TCX), the Council on Energy, Environment and Water (CEEW), and also the Confederation of Indian Industries (CII),” Upendra Tripathy, Interm Director-General, ISA, told BusinessLine.

“This task force is holding a meeting on December 11 in Paris to define the fund-raising roadmap for the Common Risk Mitigating Mechanism (CRMM). The recommendations of this committee will be placed before the ISA steering committee,” he added.

According to the minutes of the fifth meeting of the International Steering Committee of ISA, the objective of CRMM is de-risking and reducing the financial cost of solar projects in member countries. The mechanism is slated to be rolled out by December 2018.

“CRMM will act as a pooled insurance with limited liability. Banks and multi-lateral institutions can contribute to the fund for a marginal premium. This will lower the cost of capital for developing renewable energy projects.

“The premium will be comparable to the rates by Exim banks. We hope it to be less than 1 per cent. We aim to have $1 billion under CRMM by December-end next year,” Tripathy said.

Funds raised

It is understood that the CRMM fund already has channelled $250 million through the India-UK Fund. The body aims to raise another $350 million through the Green Climate Fund and around $250 million from private investors. A $300-million India-French fund, similar to the India-UK Fund, is also being assessed.

An official aware of the possible CRMM working, said: “The risk basket CRMM will cover will be customised as per the member country. It can vary to cover hurdles such land acquisition to change of government, depending on the magnitude of risk in a member country.”

Published on December 11, 2017

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Sincerely,

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.