Line of Credit agreement between India and Sri Lanka in Solar Energy Sector

India extended a line of credit (LOC) of $100 million to Sri Lank through the Exim Bank for financing projects in the solar energy sector in Sri Lanka.

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The LOC will help finance various projects in the solar energy sector in Sri Lanka including those announced during the founding conference of the International Solar Alliance (ISA) held in March 2018, such as rooftop solar photovoltaic systems for households and government buildings.

89 countries including Sri Lanka have signed the framework agreement of ISA which was jointly launched by Prime Minister Narendra Modi and former French president Francois Hollande in November 2015.

ISA aims to bring together countries to promote large-scale deployment of solar energy and overcome challenges related to technology, finance and capacity.

Over the past seven years, solar power generation in India has increased to 34.6 GW in 2021 from about 2.6 GW in March 2014. The National Solar Mission of India aims to increase it further to 100 GW and beyond.