The European Investment Bank (EIB) and the Indian private sector lender Yes Bank have launched a new $400m initiative to support the expansion of renewable energy power generation across India.

The joint initiative will support the construction of new solar power plants and wind farms across the country.

Yes Bank will be responsible for the management the new co-financing programme.

The renewable energy initiative will supported by $200m from the EIB, alongside financing from YES BANK, project promoters and other financial institutions.

Financial details of the EIB – Yes Bank initiative are expected to be finalised in the coming weeks.

The new financing programme is aimed at streamlining financing for renewable energy projects that are being built and operated by Indian companies.

Solar projects in the states of Rajasthan, Telangana, Maharashtra and Karnataka have already been identified as eligible for the financing programme.

EIB Vice President Andrew McDowell said: “India and the European Union are committed to the Paris Agreement and tackling climate change.  This new USD 400 million initiative demonstrates the shared vision and commitment of both the European Investment Bank and Yes Bank to increasing renewable energy power generation across India.

“This new financing programme will make a significant contribution to harnessing wind power and solar energy to produce green energy, create thousands of jobs during construction and strengthen technical and financial skills for the renewable energy sector to expand.”

The initiative is the first EIB tie up with the Indian bank. It also represents the EIB’s first support for renewable energy in Asia with a commercial bank.

The EIB has made new investments in sustainable transport in India in recent months to support expansion of the Bangalore and Lucknow Metro systems.

In 2016, the European lender offered €19.6bn for climate related investment worldwide.

Image: Yes Bank will be responsible for the management the new co-financing programme. Photo: Courtesy of Steve Ralston/FreeImages.com.