UK strengthens green finance links in India
The UK's development finance institution has announced the formation of an independent solar and wind generation company that will focus on developing renewable capacity across India and other South Asia nations.
CDC, which is wholly owned by the UK Government, appointed Mr Shivanand Nimbargi as chief executive of the newly-formed Ayana Renewable Power, which will develop hundreds of megawatts of renewable generation capacity in underserved Indian states and in areas of Bangladesh, Nepal, Myanmar and Sri Lanka.
The new company will by fully funded by the CDC and run by an independent board and management team. Mr Nimbargi has worked for a variety of Indian energy firms, including managing the 700MW capacity portfolio for Green Infra. He will work with Dr. P.J. Nayak, who will act as the chairman of Ayana.
CDC’s Head of South Asia, Mr. Srini Nagarajan said: “I am delighted to signal the formal launch of Ayana Renewable Power and announce the appointments of Mr. Shiv Nimbargi and Dr P.J. Nayak. Shiv has a successful track record in creating the green energy capacity that is vital to India’s long-term economic development.
"He has the skills and focus needed to help Ayana become a major provider of renewable energy, particularly in those Indian states that are in the process of attracting investment for green energy generation. His experience and values will help build a strong team that can use CDC’s investment to create jobs, reduce carbon emissions and provide our secured energy supplies to our focussed geographies.”
CDC is the world’s oldest development finance institution and works to support business ventures in Africa and South Asia. Last year, it invested £1.2bn in businesses in developing countries. Over the last five years, the CDC has made an average annual return on net assets of 12.9%.
The company formation is the latest move to strengthen ties between the UK and India – which is aiming to install 175GW of renewable energy by 2022.
Back in 2015, the Prime Ministers of the UK and India met in London to strike a £3.2bn clean energy and climate change deal. The overall aim of the deal was to encourage the research, development and deployment of clean technology, renewables and nuclear initiatives.
A year later, the UK Government – this time led by Prime Minister Theresa May – confirmed a continued partnership with India towards strengthening clean energy, climate change and smart city initiatives post-Brexit.