New Delhi, April 29 (KNN) The International Finance Corp (IFC), the  private financing arm of the World Bank, on Tuesday will partner with PTC India Financial Services (PFS) to provide infrastructure financing for renewable energy projects in India.
 
This partnership will reduce cost of  renewable energy projects and clients will also have access to global best practices, including IFC's environmental and social guidelines, according to  R.M Malla, chief executive of PFS, a non-banking finance company and previous CMD of IDBI Bank and SIDBI, two leading development Banks of India. 
 
Presently, foreign development agencies  of Japan,  Germany etc. are providing low cost credit to Indian development Banks, for energy efficient and renewable energy projects, but the ultimate cost of the funds to the  borrowers are quite high due to hedging costs for exchange rate risks. It is to be seen whether this new endeavour will provide affordable funding to the Green projects of Indian industry.
 
PFS becomes the first institution in India, and the twenty-sixth globally, to sign IFC's master cooperation agreement. The ultimate aim is to make financing available in shorter time-frames and reduce financing costs for borrowers, enabling them to operationalize projects faster, an IFC release says.
 
IFC and PFS can work more efficiently with Indian companies to spur private sector development by providing long-term risk capital where it is needed most, according to an IFC spokesperson. (KNN/DB)