HAR­NESS­ING THE SUN

Ru­pee 29,500 crore has been dis­bursed for re­new­able energy sec­tor since last Fe­bru­ary

The Economic Times - - Around The World -

have been get­ting monthly sta­tus re­ports on achieve­ments made so far by the Banks &NBFCs who have given com­mit­ments to fi­nance RE bank­able projects.

The Gov­ern­ment has set an am­bi­tious tar­get of 175 GW of Re­new­able Energy ca­pac­i­ties by 2022. Achiev­ing this tar­get re­quire cap­i­tal out­lay of US $ 160 bil­lion in­clud­ing equity of US $ 40 bil­lion. In ad­di­tion, huge in­vest­ment is re­quired for trans­mis­sion; up-gra­da­tion of in­fra­struc­ture in or­der to uti­lize power gen­er­ated though Re­new­able Energy sources. As such Banks &NBFCs have to play a ma­jor role to pro­vide low cost and long term fi­nanc­ing for these projects.

Over the last few years some pri­vate banks in In­dia have signed deals with devel­op­ment banks to pro­vide loans at con­ces­sional rates. The In­dian Re­new­able Energy Devel­op­ment Agency (IREDA) is also pro­vid­ing loans at low rates fol­low­ing its re­cent agree­ments with banks like KfW, AFD, Nordic In­vest­ment Bank, World Bank, Asian Devel­op­ment Bank, the Euro­pean In­vest­ment Bank, and Ja­pan In­ter­na­tional Co­op­er­a­tion Agency. Re­cently, the Cab­i­net Com­mit­tee on Eco­nomic Af­fairs, chaired by the Prime Min­is­ter Shri Naren­dra Modi has ap­proved the scal­ing up of bud­get from Rs, 600 crore to Rs. 5,000 crore for im­ple­men­ta­tion of Grid Con­nected

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