Line of Credit

On 16th June, 2021, India extended a line of credit (LOC) of $100 million to Sri Lank through the Exim Bank for financing projects in the solar energy sector in Sri Lanka, including those announced at the founding conference of the International Solar Alliance (ISA) held in March 2018. It will build rooftop solar photo-voltaic systems for households and government buildings.

Significance

• The line of credit extended by India is for a period of 20 years and will help to expand the International Solar Alliance (ISA) and highlight India as key driver to propagate solar power as alternative source of energy.
• It provides a framework for facilitating global cooperation, building a global ecosystem of interconnected renewable energy resources (mainly solar energy) that can be smoothly shared.