India extends USD 100 mn LoC to Sri Lanka

India has extended a USD 100 million Line of Credit to Sri Lanka to finance projects in solar energy sector.

Key Points

• Agreement was signed between Sri Lankan government and Export-Import Bank of India.
• This LOC will also ensure that Sri Lanka’s 70 percent power requirements are fulfilled by renewable energy sources by 2030.
• LOC will also finance solar energy projects in Sri Lanka, announced during Founding Conference of International Solar Alliance (ISA) in 2018. It includes project like rooftop solar photo-voltaic systems for households and government buildings.

India-Sri Lanka Relation

India has become the first country to sign deal with Sri Lanka on vision of President of Sri Lanka to fulfil 70 per cent of its national power requirements using renewable energy sources by 2030.

International Solar Alliance (ISA)

89 countries, including Sri Lanka, signed the Framework Agreement of ISA, jointly launched by Narendra Modi and former French president Francois Hollande. ISA seeks to bring together the countries in promoting large-scale deployment of solar energy and to overcome challenges involved with technology, finance and capacity.

Solar Power Generation in India

Solar power generation in India has increased to 34.6 GW in 2021 from 2.6GW in March 2014. India has launched National Solar Mission with the aim of increase it further to 100 GW.

Month: Current Affairs - June, 2021