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India is an emerging international hub for investing into the Renewable Energy sector.  Investors across the globe are eyeing the country to make fortunes from the deployment of Renewable Energy based power generation projects.  The country is expecting an investment of $200 billion in the Renewable Energy domain; domestic and international investors have already committed $20-30 billion investment for such ventures.

Further, the Securities and Exchange Board of India (SEBI) might soon propose a new regulatory framework to ease the issuance and listing of green bonds.  A new concept ‘YieldCo’ is also under consideration; this will help garner funds exclusively for Renewable Energy projects.

A ‘YieldCo’ is a public limited company which can own assets that generate cash flow primarily through long term contracts.  This type of model lowers the cost of capital by separation of volatile assets.  Tax incentives will further add to the value of such a company setup.