Wind in­dus­try seeks long-term credit

Power Watch India - - DISPATCHES FINANCE -

The re­cently launched Na­tional Mis­sion in Wind Power in­dus­try will prob­a­bly con­sider a plea by the in­dus­try to make sure that those who want to put up wind farms get ac­cess to credit — just long-term credit, not even at any lower rate of in­ter­est. To­wards this, the wind power in­dus­try has mooted the cre­ation of a Rs 25,000-crore fund, which could per­haps be man­aged by the gov­ern­ment-owned re­new­able en­ergy fi­nance com­pany, IREDA, out of which loans could be given.“To­day, wind com­pa­nies stand last in the queue for credit,” Ramesh Ky­mal, a doyen of the wind power in­dus­try in In­dia and the Chair­man of the In­dian Wind Tur­bine Man­u­fac­tur­ers As­so­ci­a­tion re­port­edly said. The in­dus­try is not ask­ing for any sub­sidised in­ter­est rates, but for more loan for the same amount of eq­uity cap­i­tal (or, ‘higher lever­age’) and loans re­payable over longer terms, say 10-15 years.The as­so­ci­a­tion, along with the Wind In­de­pen­dent Power Producers As­so­ci­a­tion and the Shakti Sus­tain­able En­ergy Foun­da­tion, made a pre­sen­ta­tion at a meet­ing of all stake­hold­ers held in Delhi on Jan­uary 9. Ky­mal noted that while the spe­cific rec­om­men­da­tion for the cre­ation of a fund to give loans out of it will be con­sid­ered by the gov­ern­ment, “Every­body agreed that there is a need to do some­thing,” he said about giv­ing the wind in­dus­try eas­ier ac­cess to credit.

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