Over Rs. 71,200 crore sanctioned for Renewable Energy Sector by Banks & NBFCs since February, 2015

Banks & Non-Banking Financial Companies (NBFCs) have sanctioned over Rs. 71,201.54 crore to finance various renewable energy projects and disbursed Rs. 29,529.57 crore against the sanctioned amount since February 2015 till 21 March, 2016.

During RE-INVEST 2015, 40 major Banks and Non-Banking Financial Companies (NBFCs) committed to provide debt funding to Renewable Energy Projects aggregating to over 78.75 GW during the span of next five years. Loans sanctioned by these Banks & FIs for RE projects are 18.63% of commitments made.

The commitments made to finance RE projects and agreements with Foreign Banks& FIs to provide low cost and on long term funding are expected to boost renewable energy sector in the country.

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

RE-INVEST organized by Ministry of New and Renewable Energy last year in New Delhi witnessed RE capacity commitments of over 283 GW from stakeholders. Further, there was commitment of over 62 GW of manufacturing of RE equipment in India.

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. 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.