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Reaching India’s Renewable Energy Targets Cost-Effectively: A Foreign Exchange Hedging Facility
This executive summary explores the potential for a government-sponsored foreign exchange (FX) hedging facility to reduce the cost of renewable energy in India. It argues that high market-based currency hedging costs currently make foreign debt nearly as expensive as domestic debt, hindering the achievement of 2022 renewable energy targets. The document analyzes a proposed facility that would cover debt payments for USD loans, estimating its expected cost and the potential reductions in government support and energy costs.
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Document type: Executive summary
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