A delegation from the World Bank has initiated talks with the state government of Goa to establish the first sub-national climate resilient green fund aimed at supporting renewable energy adoption in the region.
Blended Finance Scheme
- The World Bank will collaborate with entities like NABARD, SIDBI, and Power Finance Corporation to create a blended finance scheme.
- This scheme aims to reduce the lending costs for green initiatives undertaken by the state and MSMEs in Goa.
Operational Framework
- Upon establishment, a project management unit will oversee the fund’s operations.
- Goa will propose projects to access funds for carbon and climate-resilient investments.
Partnership and Funding
- Power Minister Ramakrishna Dhavalikar emphasizes the critical role of finance in enabling green initiatives.
- The partnership includes government, international development finance agencies, and the private sector to support Goa’s green ambitions.
Approval Process
- Goa has submitted its proposal to Niti Aayog, with Chief Minister Pramod Sawant pursuing final approval from the Department of Economic Affairs.
- The initiative is hailed as one of the first sub-national facilities in India and sets a precedent for other states.
Motivation and Background
- The fund is a response to Sawant’s 100% renewable energy plan for Goa, announced at the G20 Summit.
- Goa recognized the need for financial support to achieve its renewable energy goals, leading to collaboration with the World Bank.
Implementation and Beneficiaries
- SIDBI Chairman Sivasubramanian Raman highlights the consortium’s efforts to lower finance costs for renewable energy projects.
- MSMEs are identified as primary beneficiaries, with funds targeted at promoting solar plants, electric mobility, and other climate change mitigation measures.
Incentivizing Renewable Energy Adoption
- SIDBI launches a scheme utilizing the e-RUPI platform to incentivize MSMEs to adopt rooftop solar power plants and other renewable energy products.
- Collaboration with YES Bank and National Payments Corporation of India facilitates sustainability audits for MSMEs, with SIDBI providing e-RUPI vouchers to cover a portion of the audit costs.
Multiple Choice Questions (MCQs):
- Who are the key stakeholders involved in establishing the climate resilient green fund in Goa?
- A) World Bank and IMF
- B) NABARD, SIDBI, and Power Finance Corporation
- C) United Nations and World Health Organization
- D) Goa State Government and Local NGOs
- Answer: B) NABARD, SIDBI, and Power Finance Corporation
- What is the primary objective of the blended finance scheme proposed for Goa?
- A) Increasing lending costs for green initiatives
- B) Supporting non-environmental projects in Goa
- C) Reducing the cost of lending for renewable energy projects
- D) Encouraging deforestation and industrial growth
- Answer: C) Reducing the cost of lending for renewable energy projects
- What is the role of the project management unit in the establishment of the climate resilient green fund?
- A) Overseeing operational activities
- B) Conducting sustainability audits
- C) Lobbying for international support
- D) Implementing government policies
- Answer: A) Overseeing operational activities
- Which entity has tied up with YES Bank and National Payments Corporation of India to incentivize MSMEs for adopting renewable energy?
- A) NABARD
- B) Power Finance Corporation
- C) SIDBI
- D) World Bank
- Answer: C) SIDBI