US is keen on investing in India's clean energy sector, the Export – Import bank of the United States announced on Monday. The bank has approved loans tune to $1.4 billion (about Rs 6,300 crore) to Indian companies in the first nine months of fiscal year starting from October, 2010.

The bank has approved financing of $75 million for four solar projects in India. “India has set ambitious goals to increase solar-energy production and is creating incentives to encourage solar companies to develop this market,” Fred Hochberg, chairman of US Ex-Im bank told reporters in New Delhi.

The US bank will also provide $16 million in long-term financing for the project to meet India’s clean energy objectives under the national solar mission. The loan will go to Azure power, which has a solar power plant in Jayal in Rajasthan.

Apart from Azure, Dalmia Solar Project, Punj Lloyd Solar Project and ACME Solar Technology are the major beneficiaries of loans from the bank. The bank also plans to invest $500 million to support 315 megawatts of solar plants in India. “We are working with US exporters to make sure that they have the competitive financing they need to participate in these important initiatives,” Hochberg said.

India aims to generate over 20,000 MW of installed solar power by 2022 under the Jawaharlal Nehru National Solar Mission.  

Fred Hochberg is currently in India from July 17-22 on business development mission, which coincides with US secretary of state Hillary Clinton’s visit to India. During her visit which officially starts from July 19, she is expected to discuss a wide range of issues, including some of the irritants that have emerged in the otherwise deepening political and economic relationship. The dialogue between ministry of external affairs S M Krishna and Clinton will begin on Tuesday.

Clinton will call on prime minister Manmohan Singh, United Progressive Alliance chairperson Sonia Gandhi, leader of opposition in the Lok Sabha Sushma Swaraj and finance minister Pranab Mukherjee.

The secretary of state will visit Chennai, becoming the first US secretary of state to do so. The bilateral trade between both countries in 2010 increased by 30 per cent to nearly $50 billion.