The European Investment Bank (EIB) and the Indian Exim Bank have inked a €150m loan agreement for the financing climate change mitigation projects in the country

The funding will be employed for the production of electricity and heat through renewable energy projects such as small hydro, wind, solar, geothermal, sustainable biomass and energy efficiency projects.

The power generation projects will include – cogeneration, district heating, industrial modernization alongside other climate change mitigation projects.

As per the agreement, the Exim bank of India will in turn offer loans to small, medium-scale and some large projects, implemented by public and private sector companies.

This agreement will contribute to the EU-India Strategic Partnership which focuses on energy sustainability, and combating climate change, amongst other areas of collaboration.

Earlier in December 2008, EIB has inked the first framework loan for financing investment that contribute to the mitigation of climate change and support in India.