Un­fazed by poor re­sponse to 2015 edi­tion, govt launches RE-In­vest 2017

The Hindu Business Line - - NEWS -

The un­ful­filled com­mit­ments made by project de­vel­op­ers and lenders dur­ing RE-In­vest 2015 are not be­ing seen as a de­ter­rent as the gov­ern­ment has gone ahead and launched RE-In­vest 2017.

RE-In­vest is the flag­ship event of the gov­ern­ment to high­light achieve­ments and at­tract in­vest­ments in the clean en­ergy sec­tor.

“The in­dus­try and de­vel­op­ers had com­mit­ted for 293 GW of re­new­ables and against this, 39.3 GW ca­pac­ity (13 per cent) is com­mis­sioned or un­der im­ple­men­ta­tion. As against the fi­nan­cial pledge of ₹4 lakh crore by banks, ₹1.8 lakh crore have been sanc­tioned,” an of­fi­cial state­ment said.

In con­trast to their com­mit­ment of lend­ing ₹12,000 crore for 2,400 MW of re­new­able en­ergy projects, none of the for­eign banks have dis­bursed any amount. Public sec­tor banks are the sec­ond worst per­form­ers with a 27.33 per cent com­pli­ance against their fi­nan­cial com­mit­ments. The PSBs sanc­tioned ₹43,386.80 crore against their com­mit­ment of ₹1,58,740 crore. The high­est com­pli­ance came from from Pri­vate Sec­tor Non-Bank­ing Fi­nanc­ing Com­pa­nies that have sanc­tioned 79.38 per cent or ₹49,611.25 crore of their ₹62,500 crore com­mit­ment.

Also dis­bur­sals paint a bleak pic­ture. The to­tal com­mit­ment for fi­nanc­ing clean en­ergy projects dur­ing REIn­vest 2015 was ₹3,94,255 crore, but dis­bur­sals as of Au­gust end stood at only ₹1,37,015.95 crore. This data was shared at the cur­tain raiser event for RE-In­vest 2017.

Speak­ing at the event, RK Singh, Min­is­ter of State (In­de­pen­dent Charge) for Power and Re­new­able En­ergy, said, “We ex­pect In­dia's per capita en­ergy con­sump­tion to dou­ble in next 6 to 7 years, and then dou­ble again after 5 years.” He said that In­dia’s en­ergy needs are go­ing to dou­ble in the next 6-7 years at the present rate of growth of the econ­omy.

Com­ment­ing on the record low tar­iffs for re­new­able en­ergy in the coun­try, Singh said, “As de­mand for so­lar en­ergy in­creases, I see tar­iffs and price of cells and mod­ules fall­ing fur­ther.”

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