Chennai (TIP): The US Agency for International Development (USAID) and US-based institutional investor Northern Lights Capital Group will together bring in $100 million investment in India’s clean energy sector via Nereus Capital. This is the first time USAID has partnered with a private investment fund to facilitate targeted investment. The Agency will provide a 40% credit guarantee for a $100 million limited partner commitment to Nereus Capital’s India Alternative Energy Fund managed by Northern Lights Capital Group, a statement from the US Consulate General in Chennai said.
The investment will be disbursed through the Agency’s Development Credit Authority. The investment decision was made at the fourth annual US-India Strategic Dialogue, during Secretary of State John Kerry’s visit to India. “This investment could eventually create as much as 300-400 additional megawatts of sustainable energy capacity, which is equivalent to lighting the homes of tens of thousands of Indian families. It will help to facilitate access for US entrepreneurs to this emerging market,” Raj Shah, administrator of the Agency said.