India extends $100 mn loan to Sri Lanka for Solar Energy Projects

India extends $100 mn loan to Sri Lanka for Solar Energy Projects

Part of: GS Prelims and GS II – GS -II – International relations 

In news 

• Recently, India has signed an agreement extending a USD 100 million Line of Credit (LOC) to Sri Lanka for Solar Energy projects. 
  • The LOC is for a period of 20 years, with an interest of 1.75%.
  • It was signed between the Government of Sri Lanka and the Export-Import (EXIM) Bank of India.
  • EXIM Bank is a specialized financial institution, wholly owned by the Government of India.
• LOC will help Financing various projects in Sri Lanka’s solar energy sector 

India’s Initiatives for Global Cooperation Solar Energy

• International Solar Alliance (ISA):

• • Launched by the Indian Prime Minister and the French President in 2015 
  • ISA’ vision: To enable One World, One Sun, One Grid (OSOWOG).

• One Sun, One World, One Grid (OSOWOG):

• • Focus: A framework for facilitating global cooperation, building a global ecosystem of interconnected renewable energy resources (mainly solar energy) that can be smoothly shared.

Schemes for Promoting Solar Energy in India

• Recently, India achieved 5th global position in solar power deployment by surpassing Italy.
• National Solar Mission aims to establish India as a global leader in solar energy by creating the policy conditions for its deployment across the country.
• Rooftop Solar Scheme: To generate solar power by installing solar panels on the roof of the houses
• Production-linked Incentive (PLI) scheme to promote manufacturing of high efficiency solar PV modules in India.