Doubling priority lending for renewables to help only small installations

Industry players say cap is inadequate to meet funding requirements of planned mega projects

The Reserve Bank of India (RBI) last week doubled the loan limit for the renewable energy sector under ‘priority sector lending’ to Rs 30 crore. Though a long-pending demand for priority sector lending status has been met, industry players pointed out the cap was inadequate to meet funding requirements of planned mega projects. 

The lending support might, however, help smaller solar projects especially rooftop ones and solar run irrigation pumps for the agriculture sector. 

The RBI in its notification said the new priority sector lending norms aim to “encourage and support environment friendly lending policies to help achieve Sustainable Development