Washington: India will get USD 421 million from an American financial institution for its solar and broadband projects to enable it to become a low carbon economy and expand the internet infrastructure.

US Government's development finance institution, Overseas Private Investment Corporation (OPIC), approved USD 250 million last week in senior debt financing to subsidiaries of ReNew Power Ventures Private Limited to be utilised to construct up to 400 megawatts of new solar renewable power generation plants in India across multiple projects.

With an innovative financing structure that streamlines the funding process for new energy projects, ReNew will help India achieve its goals to transition to a low carbon economy, OPIC said.

It also approved up to USD 171 million in financing to Tikona Digital Networks, to support the expansion of Tikona's low-cost and rapidly scalable wireless broadband networks across India.

OPIC said that India lacks widespread broadband service availability due to poor wireline infrastructure.

Recent studies showed that increased broadband penetration is linked to GDP growth in developing countries.

OPIC said its support to Tikona will promote internet adoption among residential and commercial consumers and advance this critical foundation for economic and social development.