Drawn to India’s expanding renewable energy capacity, the UK government’s development finance institution British International Investment (BII) plans to invest $1 billion in Indian climate-related projects by 2026.
Nick O’Donohoe, CEO of BII told Reuters “We are evaluating exciting businesses in sectors such as bio-fuels, circular economy … as part of the vision for the 2030 roadmap agreed between India and the U.K.”
In India, BII invested over $300 million in climate finance last year in sectors such as renewable energy, electric mobility and sustainable agriculture.
Its current portfolio in India is valued at $2.2 billion with investment in over 290 businesses. Last year, BII agreed to invest up to $250 million in automaker Mahindra and Mahindra Ltd’s new electric vehicle unit.
“India has produced the best returns of any geography we have invested in,” said O’Donohoe, citing buoyant stock markets and a stable political environment in the country. BII wants to invest in new entrepreneurs and companies that are struggling to raise funds for their emission-cutting projects, he added.
