Tata Capital Limited – Cleantech Finance (India)

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Member Overview

Tata Cleantech Capital Limited (TCCL) was set up 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 was incorporated as a private limited non-banking finance company in India, licenced by the Reserve Bank of India as a systemically important non-deposit accepting non-banking finance company.

Effective January 1, 2024, Tata Cleantech Capital Limited (TCCL) merged into its parent entity, Tata Capital Limited (TCL). Following the merger, TCCL ceased to exist as a legal entity but would persist as a crucial business vertical of the merged entity, now named Tata Capital Limited – Cleantech Finance.

Activities

TCL – Cleantech Finance’s primary business is commercial lending to clean-tech sectors such as wind and solar energy, solar rooftop, small hydro energy, off-grid solar, waste management, water management, electric mobility, and energy efficiency (including green logistics & green buildings). In each of these sub-sectors, TCL – Cleantech Finance has been a first-mover investor, demonstrating through its investments the market potential for emerging technologies.  For example, TCL – Cleantech Finance was one of the first private sector lenders to solar/wind power generation projects being set up for the supply of power to central and state utilities and customers in the C&I segment.

Post-merger, the clean-tech sector's focus will intensify and broaden, extending beyond renewables to impact every industry in their energy transition journey. As part of a larger entity, TCL – Cleantech Finance aims to address growing demands across corporate, SME, and retail segments with tailored financial solutions.

In addition to its lending activity, TCL – Cleantech Finance provides technical and financial advisory services.  For example, TCCL (erstwhile) conducted carbon footprint studies for the EU and IFC and has advised international developers on multiple acquisition transactions. In 2018, TCCL (erstwhile) became the first private company to partner with the Green Climate Fund to develop the solar rooftop market in India through a US$ 100 million credit line.

LEARN MORE ABOUT TCL – CLEANTECH FINANCE'S TRANSACTIONS

Impact

Since its inception and as of September 2023, TCCL (erstwhile) provided funding to more than 350 clean-tech projects with a total investment of ~US$ 2.29 billion. Through its investments in renewable energy projects in India, TCCL (erstwhile) has assisted in avoiding an estimated CO2 equivalent emission of 25.35 billion tonnes.

TCL – Cleantech Finance partners with various classes of domestic and international investors, including development finance institutions, multilateral banks, and pension funds. On multiple occasions, it has demonstrated the ability to source and underwrite transactions that other commercial lenders were unable to close directly and has also acted as a risk sharing facility host. Thus, TCL – Cleantech Finance has been instrumental in expanding the pool of clean-tech investors in India.