Public and NBFCs commits investment of Rs 3.82 lakh crore for 76,352 MW Capacity – Piyush Goyal

The indigenous renewable sectors have turned heads recently. With active participation from investors and integrators, India seems to lorry its promising solar mission. At the ongoing budget session of Parliament, New and Renewable Energy Minister Piyush Goyal elatedly states that public as well as private banks and non-banking finance companies (NBFCs) have committed for financing renewable energy projects of 76,352 MW capacity with an outlay of Rs 3.82 lakh crore. “24 Public Sector and 8 Private Sector Banks and 4 Public Sector & 2 Private Sector NBFCs have committed for financing renewable energy projects of 76,352 MW capacity with an outlay of Rs 3,82,255 crore over 5 years through green commitment certificates,” said the Minister.

The minister asserts that banks and financial institutions have already supported projects of 25,318 MW capacity with sanctioned and released amount of Rs 63,473 crore and 26,105 crore respectively, as on December 31, 2015. He also said that efforts are also being made to mobilise funds for the renewable energy sector from multilateral and bilateral banks such as The World Bank, Asian Development Bank, National Development Bank and Asia Infrastructure Development Bank and are at various stages of approvals.

According to the statement, financial assistance of USD 700 million from World Bank and USD 500 million from Asian Development Banks for solar parks is under consideration.

Besides, these multilateral bodies will also one billion euros and over USD 1 billion for solar rooftops in India. Among public sector banks State Bank of India will be financing the largest capacities of 15,000 MW capacity with an outlay of Rs 75,000 crore followed by IDBI bank (3000 MW). The 24 public sector banks will be financing projects of 31,649 MW with and outlay of Rs 1,58,740 crore. Public sector NBFCs including IREDA, IIFCL, PFC and REC will finance renewable energy projects of 14,500 MW with an outlay of Rs 72,500 crore. Private sector NBFCs — L&T Infrastructure Finance Company and PTC India Financial Service will finance projects of 12,500 MW with an outlay of Rs 62,500 crore. Private Banks will finance projects of 17,703 MW with an outlay of Rs 88,515 crore. As on December 31, 2015, private as well public sector banks and NBFCs sanctioned Rs 63,473.23 crore out of which an amount of Rs 26,105.61 crore was disbursed.

In a separate reply, the minister told the House that the inter-ministerial group approved 34,984.09 crore under the National Clean Energy Fund for renewable energy projects so far since the financial year 2011-12.

The minister also shared figures of the year 2011-12 saying 34,984.09 crore had been approved under the National Clean Energy Fund for renewable energy projects. Whereas in this fiscal year the panel had approved Rs 18,469.47 crore compared to Rs 12,000.17 crore in previous fiscal.

The NCEF is a fund created in 2010-11 using the carbon tax – clean energy cess – for funding research and innovative projects in clean energy technologies of public sector or private sector entities, up to the extent of 40 per cent of the total project cost.