OREANDA-NEWS. November 21, 2011. Tata Capital announces its foray into the area of climate change with the formation of Tata Cleantech Capital (TCCL), in association with International Finance Corporation (IFC), a member of World Bank Group.

TCCL proposes to provide financing and advisory services to small and medium enterprises (SMEs) and large corporates in India that are engaged in climate change initiatives. IFC will invest up to 19.5 per cent stake in the equity capital of TCCL, with the rest of the capital being initially contributed by Tata Capital. The carrying on of financing activity by TCCL would be subject to it receiving NBFC registration from the RBI.

Initially, TCCL will focus on the following key areas: energy efficiency for SMEs, renewable energy generation projects (such as wind power, small hydro power, solar power, bio-mass and waste treatment) and water management projects. Over a period of time, TCCL will be open to looking at other areas such as sustainable agriculture projects, smart grid projects, clean transportation and pollution control.

Praveen Kadle, managing director and chief executive officer, Tata Capital, said, “A deep concern for the environment has always driven Tata companies to undertake green projects and adopt environment-friendly technologies. Tata Cleantech Capital is a focussed initiative to assist, via lending and advisory services, the small, mid-sized and even large companies to promote clean technology. In this initiative, TCCL will leverage Tata Capital’s network, expertise and extensive corporate customer base. IFC’s experience and expertise in offering lending and advisory services in clean-tech sectors will be an added asset to the new company.”

“By helping establish India’s first green finance company, we will reach small and mid-sized companies that are committed to promoting clean technology,” said Lars Thunell, EVP and CEO, IFC, who is visiting India this week. “These companies often find it difficult to obtain financing — especially for projects that involve technologies to mitigate climate change.”