Finance Ministry to seek increased fund flow to renewable energy sector

November 20, 2015

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The Finance Ministry has convened a meeting with banks on November 23 to discuss issue of increasing fund flow for the proposed renewable energy capacity addition of 1,75,000 MW by 2022.

The Ministry of New and Renewable Energy (MNRE) has been given a special slot to make a presentation on how banks and financial institutions can increase exposure to the renewable energy sector.

MNRE joint secretary Tarun Kapoor at the sidelines of Inter solar conference told Business Standard, “Availability of more funds at a right price will come up for discussion at the meeting of bankers slated for November 23. Cost of money was quite high about five years ago when banks were reluctant to give money. That problem is not there today. Bankers have started understanding the sector. Money is available but it is expensive so getting money at the right price is the main challenge.” He informed after the RE Invest conference held in February, MNRE had asked banks to give green commitments and the ministry got those from several banks.

“We are constantly talking to banks and convince them motivate them. Good thing is that message is coming in from the Prime Minister , finance minister and some mention coming in also in the budget speech. Now banks are becoming positive that’s way there is some movement,” Kapoor said.

He said this was the first year when the government allowed tax free bonds specifically for renewable energy . “Rural Electrification Corporation (REC), Power Finance Corporation (PFC), the Indian Renewable Energy Development Agency (IREDA) and NTPC raised money through green bonds. Now we expect PFC and REC to have separate fund to finance renewable energy,” he added.

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