The World Bank and the Government of India have signed an agreement for a $43 million (£29m) grant to boost energy efficiency in the country.
The Partial Risk Sharing Facility for Energy Efficiency Project will provide financial help to businesses and Energy Service Companies (ESCOs) for investments in energy-saving initiatives.
India has “substantial untapped” energy efficiency (EE) potential across various sectors, according to the World Bank.
Onno Ruhl, World Bank Country Director in India said: “Improving energy efficiency will not just ease India’s energy shortfalls but also save millions of tonnes of CO2 from polluting the air each year.
“Innovative project will ease this constraint in the EE eco-system, leading thus to an EE transformation in India.”