Challenges
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Investor Engagement
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India, Asia
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Market Analysis
Client
British High Commission Delhi
Challenge
The British High Commission (BHC) Delhi wanted to determine UK strengths in green asset finance and opportunities for investment in Indian renewables. The BHC also wanted to identify investment barriers and recommended policy solutions, and match-make between the UK investment community and Indian renewable energy project developers.
Solution
Through this FCO Prosperity Fund project, CLT supported the British High Commission (BHC) Delhi to identify UK financiers that were interested in pursuing Indian green finance opportunities and described some potential solutions to overcome barriers to foreign direct investment.
CLT developed a database of 345 contacts relevant to investment and renewables in the UK and India. We contacted stakeholders in the UK green finance community to assess their interest in Indian renewable investments and to better understand the barriers the faced to investing in the Indian market.
We interviewed and surveyed key stakeholders across the UK green finance community, including the London Stock Exchange, investment banks and private equity investors, as well as Indian financial institutions like the State Bank of India to determine their awareness of the Indian investment opportunity and to understand which mechanisms could be used to overcome barriers to green investment. Among other issues, we discussed foreign exchange risk, industry regulation, corporate governance, the high cost of debt, challenging exit arrangements, and tax complexities, and proposed potential solutions.
CLT organised an Investors Summit called Clean Energy Finance India, which brought together 72 Indian renewable energy developers and UK investors. The Summit had 6 speakers, including from the State Bank of India, UK Climate Investments, Jupiter Fund Management, and Indian solar developer Surana Solar Limited. At the summit, the investment opportunities were explained, and speakers were able to ‘myth-bust’ assumptions about investing in India. Participants networked with each other to facilitate introductions and deal-flow.
Finally, CLT recommended programme options to the BHC Delhi that could be utilised to overcome barriers to investment and were within the BHC’s remit to execute. We summarised all interview notes, roundtable discussions and recommendations in a 95-page report, which, alongside the large database, prepared the BHC Delhi to advocate and promote greater UK green investment in India.
Outcome
CLT quantified high-value green finance opportunities and identified investment barriers and solutions through a large survey and dozens of stakeholder interviews. We also organised an Investors Summit in London that connected Indian project developers with UK financiers.
