EIB Global, the development arm of the European Investment Bank, has committed an investment of up to $60m to the India Energy Transition Fund managed by EAAA Alternatives. This fund focuses on renewable energy, energy efficiency, and electric vehicles to support India’s decarbonisation goals. The announcement was made in New Delhi by EIB vice-president Nicola Beer alongside EAAA Alternatives CEO Subahoo Chordia. The initiative seeks to facilitate opportunities for technology and investment exchanges between India and the EU, while India aims to double its non-fossil-fuel power generation capacity to 500 GW by 2030.
The initiative is believed to mark India’s first energy transition fund managed by a domestic fund manager. The fund, which is looking to raise $300m by the end of this year, will direct equity and quasi-equity into greenfield infrastructure projects, as well as growth-stage companies. EAAA Alternatives intends to invest approximately Rs400bn ($4.52bn) in India’s clean energy sector over the next four to five years, with a focus on developing around 8GW of projects, reports news agency Reuters. The fund also has the potential to support circular economy industries, including recycling and wastewater management.
Subahoo Chordia commented: “We are delighted to welcome EIB Global as a cornerstone investor in the India Energy Transition Fund. India’s energy transition is both a priority of the country and an attractive investment opportunity … EIB Global’s partnership adds depth and credibility to this effort, helping us accelerate India’s clean energy and decarbonisation journey while delivering long-term value for investors. Together, we will foster innovation, attract further private capital, and drive long-term sustainable growth.”
