NEW DELHI: Big-ticket announcements involving American loans for renewable energy projects, green bonds, venture capital and pension funds are on the cards after US President Barack Obama and Prime Minister Narendra Modi pledged to collaborate in the area of clean energy and combat climate change.Officials at the renewable energy ministry said deals would be negotiated at a high-profile event next month, when Modi will kick off a gathering of industry leaders, bankers, investors and central bank officials from the US, India, Europe and other regions.A team of senior US officials and executives from funding agencies, ministries and companies will interact with Indian officials from the finance ministry, Reserve Bank of India and other agencies to help India meet its ambitious target of adding 1 lakh megawatt of clean energy, which is 40% of the country’s total generation capacity now, at a cost of Rs 6 lakh crore.Officials said Power, Coal & Renewable Energy Minister Piyush Goyal is determined to ensure that new renewable capacity is built with innovative and sustainable funding, not subsidies and handouts.“The subsidy model has resulted in 30,000 mw over decades. We now want a dramatically bigger and faster capacity addition. This is not possible in the traditional model of giving subsidies,” a government official said.Already, the Adani Group and New York-listed SunEdison have announced plans to invest $4 billion to set up India’s biggest solar equipment plant.The solar energy sector has so far imported huge amounts of low-cost Chinese equipment, drawing criticism from local manufacturers.“There will be more such investments in India. The government is determined to attract companies and make it easier for them to do business in the country. India already allows 100% FDI in renewable energy , and encourages technology transfer,” a government official said.He said US companies and officials are keen to fund Indian projects in the renewable energy sector. The US is looking for a ‘government-to-government’ meeting in addition to business meetings next month. He said India had requested large American pension funds and venture capitalists to participate in the country’s renewable energy sector.Renewable energy accounts for 33,791 mw out of India’s total generating capacity of 255,000 mw at the end of December. In addition, another 1,123 mw of renewable capacity operates independent of the grid.India offers several incentives for clean energy. Distribution companies are mandated to source a part of their electricity from clean sources under the system of ‘renewable purchase obligation’. Further, the government also wants developers of large power projects to build a part of their generation capacity from renewable sources.The ministry of new and renewable energy has prepared a Cabinet note, breaking up installation of 100 gw into yearly targets till 2022. This includes projects ranging from ultramega solar parks to rooftop installations and, therefore, requires involvement of finance, revenue, power, urban development as well as agriculture departments.The Indian industry has welcomed statements on climate by Obama and Modi. “The announcement that the US and India will collaborate closely to fight climate change through clean energy projects, low gas emissions technologies, and efficiency solutions will help India achieve its goal of becoming a low-carbon economy over time while fulfilling its developmental objectives of lifting millions out of debilitating poverty,” said Chandrajit Banerjee, director-general, CII