Overview
Tata Cleantech Capital Limited (TCCL) was setup in 2011 as a joint venture between Tata Capital Limited, a subsidiary of TATA Sons Limited, and the International Finance Corporation. As India’s first private sector financial institution focused solely on green finance, it was created to offer end to end business solutions in the clean technology space, including debt capital and advisory services. It has served as a first mover in and has proactively brought new investors into India’s quickly evolving cleantech landscape. TCCL is incorporated as a private limited non-banking finance company in India and has been licenced by the Reserve Bank of India as a systemically important non-deposit accepting non-banking finance company.
Activities
TCCL’s primary business is commercial lending to cleantech sectors such as wind and solar energy, solar rooftop, small hydro energy, off-grid solar, waste management, water management, electric mobility, and energy efficiency (including green logistics & green buildings). TCCL has also been active in resource efficiency sectors such as roads, which helps in reducing travel time and enhances fuel efficiencies, and power transmission, which is essential to support the distribution of increased renewable energy power generation capacity. In each of these sub-sectors, TCCL has been a first-mover investor, demonstrating through its investments the market potential for emerging technologies. For example, TCCL was one of the first private sector lenders to solar/wind power generation projects being set up for the supply of power to Central & State Utilities and customers in the C&I segment.
In addition to its lending activity, TCCL provides technical and financial advisory services. For example, it conducted carbon footprinting studies for the EU and IFC and has advised on multiple acquisition transactions with international developers. In 2018, TCCL became the first private company to partner with the Green Climate Fund to develop the solar rooftop market in India through a USD 100 million credit line.
Impact
Since its inception and as of June 2022, TCCL provided funding to more than 250 cleantech projects. With a total investment of USD 1.8 billion, it has supported projects with a total value of USD 4.40 billion. In aggregate, TCCL has contributed to the development of more than 10 GW of renewable energy projects in India and assisted in avoiding an estimated CO2 equivalent emission of 18.8 billion tonnes.
TCCL partners with various classes of domestic and international investors, including development finance institutions, multilateral banks and pension funds. On multiple occasions, TCCL has demonstrated the ability to source and underwrite transactions that other commercial lenders or these investors were unable to close directly. It has also acted as a risk sharing facility host. Thus, TCCL has been instrumental in expanding the pool of cleantech investors in India.
Last updated August 11, 2022
