Green shoots: State-run banks, NBFCs tilt towards renewable energy projects

The second of a three-part series on credit pick-up looks at renewable energy sector, which is facing issues like cancellation of projects and grid curtailment

Banks have been wary of lending to the renewable energy sector, owing to the Rs 2 trillion worth of non-performing assets (NPAs) in the conventional power sector. But it seems the tide is turning.

Experts said factors such as one-time capital investment, steady returns and slowdown in the conventional energy space have made green energy a preferred choice for public sector banks (PSBs) and non-banking financial companies (NBFCs). The renewable energy sector needs close to $550 billion investment to meet India’s target of achieving 40 per cent of its energy requirement from clean energy sources by 2030. And financial institutions are