According to DFC documents, the proposed investment is a multiparty loan portfolio guaranty intended to strengthen each guaranteed party’s ability to provide loans to micro, small and medium enterprises, residential consumers, or low-income community-based organizations in India that are investing in or providing distributed renewable energy generation solutions, such as rooftop solar solutions, with the ultimate goal of reducing carbon emissions, thereby creating a positive impact on the environment.
The objectives of the project are to support deployment of off-grid solutions in India largely for rooftop solar systems. It also seeks to support India's renewable energy targets of 175 GW of installed renewable capacity by 2022 which includes a target of 100 GW of solar power. Out of the total installed capacity for solar power 40 GW will be met with off-grid, solar solutions. These goals will be met through direct lending to businesses, as well as to providers of solar solutions.
In addition, this transaction is consistent with the goals outlined in the USAID Country Development Cooperation Strategy for India, which calls for use of renewable energy as a means to reduce greenhouse gas emissions and increase the energy capacity.
The Project has been reviewed against DFC’s 2020 Environmental and Social Policies and Procedures manual (“ESPP”) and has been determined to be categorically eligible. DFC loan portfolio guaranties for the expansion of lending to micro, small, and medium enterprises are screened as a Category C for environmental and social assessment. These downstream investments are expected to result in minimal adverse environmental and social impacts.
ACCESS TO INFORMATION
Unlike many other development finance institutions, DFC does not currently have an access to information policy.
Under the United States Freedom of Information Act (FOIA), DFC is obliged to respond to reasonably formulated requests for Agency records. However, DFC may apply exemptions from release to certain types of information and may charge fees in responding to requests. DFC has a designated FOIA officer who is trained in how to respond to requests and implement the law. You can learn more about filing a FOIA request at: https://www.dfc.gov/foia
ACCOUNTABILITY MECHANISM OF THE UNITED STATES INTERNATIONAL DEVELOPMENT FINANCE CORPORATION (DFC)
The Office of Accountability is an independent office that addresses complaints about environmental or social issues related to DFC-supported projects. The office provides communities an opportunity to have concerns independently reviewed and addressed. If you submit a complaint to the Office of Accountability, it may assist you by either seeking to address your problems by facilitating a problem solving dialogue between you and those implementing the project and/or investigating whether the DFC complied with its policies to prevent environmental, social, human rights, and labor harms.
You can find more information about the Office of Accountability at: https://www.dfc.gov/who-we-are/office-accountability