As many as 40 banks and NBFCs have sanctioned Rs 71,201.54 crore to finance renewable energy projects and disbursed Rs 29,529.57 crore for the same during February 2015 and March 2016.
"Forty banks and non-banking financial companies (NBFCs) have sanctioned an amount of Rs 71,201.54 crore to finance the various renewable energy projects and disbursed Rs 29,529.57 crore against the sanctioned amount since February 2015 till March 21, 2016. This is a part of commitment made by them during RE-INVEST 2015," the Ministry of New and Renewable Energy said in a statement.
During RE-INVEST 2015, 40 major banks (public and private sectors), NBFCs and foreign banks operating in India committed to provide a debt funding to renewable energy projects aggregating to over 78.75 GW during the span of next five years.
Loans sanctioned by these banks and financial institutions for renewable projects are 18.63 per cent of commitments made.
The commitments made by country's Banks & NBFCs to finance RE projects and agreements with Foreign Banks& FIs to provide low cost and on long term funding are expected to boost the growth of the Indian renewable energy sector.
The Ministry of New and Renewable Energy had organised First Renewable Energy Global Investor Meet and Expo (RE-INVEST 2015) in February last year in New Delhi.
RE-INVEST 2015 saw 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 Ministry of New and Renewable Energy have been getting monthly status reports on achievements made so far by the Banks & NBFCs who have given commitments to finance RE bankable projects.
The government has set an ambitious target of 175 GW of renewable energy capacities by 2022. Achieving this target requires a capital outlay of USD 160 billion including equity of USD 40 billion.
In addition, huge investment is required for transmission, up-gradation of infrastructure in order to utilise power generated though Renewable Energy sources. As such banks and 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.
The Indian Renewable Energy Development Agency (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.
