Government inks Loan Agreement with World Bank for Shared Infrastructure for Solar Parks Project
The Union Government has signed a guarantee agreement for IBRD/CTF loan of US $98 million and Grant Agreement for US $2 million for Shared Infrastructure for Solar Parks Project with World Bank.
The objective Shared Infrastructure for Solar Parks Project is to increase solar generation capacity through establishment of large-scale parks in the country.
The project consists of two components viz. (i) Shared Infrastructure for Solar Parks and (ii) Technical Assistance. It will help to establish large-scale solar parks and support government’s plan to install 100 Gigawatts (GW) of solar power out of total renewable-energy target of 175 GW by 2022.
World Bank is one of five institutions created at Breton Woods Conference in 1944. It is part of the United Nations system, but its governance structure is different. Its headquarter are situated at Washington DC, US.
World Bank provides loans to developing countries for capital programmes. It comprises only two institutions viz. International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA). In contrast, World Bank Group comprises three more viz. International Finance Corporation (IFC), Multilateral Investment Guarantee Agency (MIGA), and International Centre for Settlement of Investment Disputes (ICSID).