Overview

Tata Cleantech Capital Limited (TCCL) was created 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 approved 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, and energy efficiency. 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 energy efficiency projects as well as to solar power generation projects with power purchase agreements.

In addition to its lending activity, TCCL provides technical and financial advisory services.  For example, it conducted carbon foot-printing 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 March 2019, TCCL provided funding to more than 150 cleantech projects. With a total investment of USD 700 million, it has supported projects with a total value of USD 4.86 billion. In aggregate, TCCL has contributed to the development of 5.2 GW of renewable energy projects in India.

TCCL partners with various classes of domestic and international investors, including development finance institutions, multilateral banks, pension funds, and wealth 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. In these ways, TCCL has been instrumental in expanding the pool of cleantech investors in India.

Last updated September 24, 2019