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The Rampal plant is part of the Power System Master Plan (PSMP) formulated by Bangladesh in 2010 to add generating capacity to the energy-starved country. The trouble with the plant, though, is that it violates almost all the objectives of the PSMP. Ironically, the Indian government is supporting the development of this coal-fired plant at a time when India itself is moving away from coal-based power.
Public-private collaboration will be essential to raising the finance needed for India's cleaner growth. While the right domestic policies will be key to facilitating finance, greatly scaling up investment from the private sector will be the only way to mobilise the full amount of capital needed to meet India's renewable energy targets. In order to scale up private investment, India needs financial instruments for renewable energy and other green infrastructure that are a better match with investors' needs.