http://www.newenergyworldnetwork.com/renewable-energy-news/by-technology/solar/adb-to-offer-solar-loan-guarantees-in-india.html

The Asian Development Bank (ADB) is set to offer a loan guarantee programme in India to help solar projects get financing, a spokesperson announced today in Mumbai.

ADB’s private sector group head Sujata Gupta said that the bank aims to provide guarantees for half of the loans that are made available for small- and medium-sized solar developments in India from global and Indian banks.
The news comes as India announced 37 winners of its first solar power project auction for solar developments in the country, Bloomberg said.
It is anticipated that the guarantee programme will support around $425m of investment into the Indian solar sector.
Gupta reportedly told journalists in Mumbai that ADB is also looking to lengthen the timeframe of the loans, potentially looking to extend bank loans to a 15-year payback period, compared to typical payback periods of around eight years.
The lender is prepared to front around $150m in payment defaults for solar projects that result from power problems or financial difficulties, which would support around $425m in investment, Gupta said.
The programme will apply only to solar projects with a capacity of under 30MW and is designed to spur private lenders to finance projects that would otherwise fall through the net for being too small to fit in with ADB’s investment criteria, but capped by law at 5MW.
ADM will be prepared to acquire up to 25 per cent in solar projects below the 30MW benchmark it has set for its guarantee programme, Gupta reportedly said in Mumbai.
India has set a national goal to generate 20GW of solar power by 2022.