Identifier
Created
Classification
Origin
08NEWDELHI2777
2008-10-23 07:42:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy New Delhi
Cable title:
OPIC-SPONSORED INVESTMENT FUNDS IN INDIA
how-toVZCZCXRO2111 RR RUEHAST RUEHBI RUEHCI RUEHLH RUEHPW DE RUEHNE #2777 2970742 ZNR UUUUU ZZH R 230742Z OCT 08 FM AMEMBASSY NEW DELHI TO RUEHC/SECSTATE WASHDC 3880 INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE RUCPDOC/DEPT OF COMMERCE WASHDC RHEBAAA/DEPT OF ENERGY WASHDC RUEATRS/DEPT OF TREASURY WASHDC RULSDMK/DEPT OF TRANSPORTATION WASHDC RHMFIUU/FAA NATIONAL HQ WASHINGTON DC RUEHRC/DEPT OF AGRICULTURE WASHDC
UNCLAS NEW DELHI 002777
SIPDIS
SENSITIVE
STATE FOR SCA/INS AND EEB
USDOC FOR ITA/MAC/OSA/LDROKER/ASTERN/KRUDD
DEPT PASS TO USTR CLILIENFELD/AADLER/CHINCKLEY
DEPT PASS TO TREASURY FOR OFFICE OF SOUTH ASIA MNUGENT
TREASURY PASS TO FRB SAN FRANCISCO/TERESA CURRAN
E.O. 12958: N/A
TAGS: EAGR ECON ECPS EFIN EINV ENRG EPET ETRD IN
SUBJECT: OPIC-SPONSORED INVESTMENT FUNDS IN INDIA
REF: SECSTATE 103210
UNCLAS NEW DELHI 002777
SIPDIS
SENSITIVE
STATE FOR SCA/INS AND EEB
USDOC FOR ITA/MAC/OSA/LDROKER/ASTERN/KRUDD
DEPT PASS TO USTR CLILIENFELD/AADLER/CHINCKLEY
DEPT PASS TO TREASURY FOR OFFICE OF SOUTH ASIA MNUGENT
TREASURY PASS TO FRB SAN FRANCISCO/TERESA CURRAN
E.O. 12958: N/A
TAGS: EAGR ECON ECPS EFIN EINV ENRG EPET ETRD IN
SUBJECT: OPIC-SPONSORED INVESTMENT FUNDS IN INDIA
REF: SECSTATE 103210
1. (SBU) This is in response to reftel, seeking Post input into
proposed OPIC support of Virgin Green Emerging Markets Fund. First,
Post notes that OPIC's investment objective of generating long-term
capital and providing capital in the renewable energy and energy
efficiency sectors is highly consistent with Government of India
(GOI) objectives. The GOI has acknowledged India's need for
long-term capital to deepen its financial markets. In addition, the
GOI has stated that there is a need for increasing renewable energy
production as part of its environmental efforts. The government
wishes to see renewable and efficient energy markets develop and
grow in India (while at the same time noting the necessity to
develop its coal reserves as well).
2. (SBU) The need for long-term capital has taken on more
urgency in light of recent months' global financial turmoil.
India's debt markets are very underdeveloped. While large Indian
companies have tapped global markets in the past, that avenue is
becoming increasingly closed off, especially for India's newer and
smaller sized companies. India's stock markets are losing value, in
sync with global market trends, and domestic bank financing is very
expensive, averaging 12-14% for the best of companies, leaving few
avenues for fledgling renewable energy companies. Overall, Post
approves of the Virgin Green Emerging Markets Fund's objectives and
potential contribution to financing of alternative energy
development in India.
MULFORD
SIPDIS
SENSITIVE
STATE FOR SCA/INS AND EEB
USDOC FOR ITA/MAC/OSA/LDROKER/ASTERN/KRUDD
DEPT PASS TO USTR CLILIENFELD/AADLER/CHINCKLEY
DEPT PASS TO TREASURY FOR OFFICE OF SOUTH ASIA MNUGENT
TREASURY PASS TO FRB SAN FRANCISCO/TERESA CURRAN
E.O. 12958: N/A
TAGS: EAGR ECON ECPS EFIN EINV ENRG EPET ETRD IN
SUBJECT: OPIC-SPONSORED INVESTMENT FUNDS IN INDIA
REF: SECSTATE 103210
1. (SBU) This is in response to reftel, seeking Post input into
proposed OPIC support of Virgin Green Emerging Markets Fund. First,
Post notes that OPIC's investment objective of generating long-term
capital and providing capital in the renewable energy and energy
efficiency sectors is highly consistent with Government of India
(GOI) objectives. The GOI has acknowledged India's need for
long-term capital to deepen its financial markets. In addition, the
GOI has stated that there is a need for increasing renewable energy
production as part of its environmental efforts. The government
wishes to see renewable and efficient energy markets develop and
grow in India (while at the same time noting the necessity to
develop its coal reserves as well).
2. (SBU) The need for long-term capital has taken on more
urgency in light of recent months' global financial turmoil.
India's debt markets are very underdeveloped. While large Indian
companies have tapped global markets in the past, that avenue is
becoming increasingly closed off, especially for India's newer and
smaller sized companies. India's stock markets are losing value, in
sync with global market trends, and domestic bank financing is very
expensive, averaging 12-14% for the best of companies, leaving few
avenues for fledgling renewable energy companies. Overall, Post
approves of the Virgin Green Emerging Markets Fund's objectives and
potential contribution to financing of alternative energy
development in India.
MULFORD