Gadkari pitches for priority sector lending to alternative fuel players

Union Minister Nitin Gadkari on Monday said there was a need for players in the alternative fuel sector to be extended priority sector lending. The minister said he would discuss the issue with Finance Minister Nirmala Sitharaman and the Reserve Bank of India (RBI).

As green energy is in a nascent stage, the financial strength of entities in this space is limited. Gadkari said they found it difficult to compete with the petrol and diesel sector, which has deep pockets. Under the RBI’s priority sector lending, banks are required to extend smooth credit at lower interest rates to sectors considered as