India offers US$ 100 million Line of Credit for three solar projects in Sri Lanka
The Indian High Commission in Colombo has reportedly stated that India has offered Sri Lanka a Line of Credit worth US$ 100 million for three solar projects.
High Commissioner of India to Sri Lanka Gopal Baglay has handed over a copy of a letter conveying the offer to Sri Lanka’s Power Minister Dullas Alahapperuma, when he had called on the Minister recently.
The High Commissioner had congratulated the Minister on assuming office and had reiterated India’s commitment towards a strong and multi-faceted partnership with Sri Lanka including in the power sector.
They had discussed ways to expedite the progress on bilateral power projects currently under discussion between the two sides, the High Commission has stated in the media release.
High Commissioner Baglay had also handed over a copy of a letter conveying an offer from India to Sri Lanka for a Line of Credit worth US$ 100 million for three solar projects. The Line of Credit was announced during the International Solar Alliance Founding Conference held in March 2018 in New Delhi.
This Line of Credit will cover financing for rooftop solar systems for 20,000 households and 1,000 government buildings across the island.
According to reports, the combined generation capacity of these rooftop systems will be about 60 MW.
The Line of Credit will also provide financing for a floating solar power plant.
The implementation of the Line of Credit will begin with the conclusion of a Line of Credit agreement between the two sides.
The government of Sri Lanka has given prominence to renewable energy generation projects as a solution to the looming power crisis in the country. Therefore there are many business/investment opportunities in Sri Lanka’s power sector. The expanding economy due to the country’s geographical positioning in the Indian Ocean region and the many trade agreements as well as trade concessions enjoyed by the country have opened up a host of business/investment opportunities in the island.
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