Will continue to fund Indian projects in critical areas: US’ DFC chief

Chennai: The US International Development Finance Corporation (DFC), which has pumped in USD 4 billion in key infrastructure projects including in renewable energy in India, is ready to fund projects in critical areas like electric vehicles and swappable batteries with an aim to create “reliable” and “resilient” supply chains, a top official said here on Thursday.

Speaking on the sidelines of the inauguration of First Solar’s India manufacturing plant in Sriperumbudur near here, Scott Nathan, CEO, DFC, said India was a key partner of the US and 40 per cent of funding by the state-owned company has so far flown into Indian entitles in key areas like health care, renewable energy, and food security.

DFC, an arm of the US government, has infused about USD 500 million into the First Solar plant, which doesn’t depend on raw materials from China for its thin film solar modules, and has committed USD 425 million for Tata Power’s solar project in Tirunelveli district.

“We will continue to fund private sector projects in India. The United States is committed to working with India to create reliable and resilient value chains worldwide. That's exactly what we're doing here today. And this beautiful facility is a concrete result of that partnership,” Nathan said.

To a question, Nathan said the DFC would be ready to invest in business models in companies that manufacture electric vehicles or in companies that operate them and cited the example of the agency inking a deal in Latin America for e-bikes.

“…that’s the kind of innovative new technologies that we are looking to invest in. We are there to provide financing but we need the entrepreneurs and the businesses to lead. We provide the financing and the entrepreneurs need to have the ideas and skin in the game to make things happen,” he added.

Nathan added that a diversified, secure, and transparent supply chain in critical industries is a key part of the US foreign policy objective because the pandemic demonstrated how important it is to have resilient supply chains.

DFC is not just investing in India but in its neighbouring countries like Sri Lanka to ensure that supply chains of various industries aren’t concentrated only in China. “It is critical that we don't end up in a position of dependence (that) oil created. DFC’s strategy is to invest in new sources of critical minerals, and new sources of the equipment necessary for renewable energy. India and the US are working together because our interests are so closely aligned with our values,” he added.

US Ambassador to India Eric Garcetti said Tamil Nadu is one of the key states where US companies invest and hailed its three Ps – people, place, and politics. “In terms of geography, it is a key market for exports and imports and politics is the stability that the state has. Politics and policies with conscience,” he added.