As part of the commitment made by banks and Non-Banking Financial Companies (NBFCs)during RE-INVEST 2015, as many as
40 Banks and 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 21 March, 2016.
An official statement said 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.
It may be recalled that during RE-INVEST 2015, 40 major Banks and Non-Banking Financial Companies (NBFCs) [Public, Private Sector Banks &NBFCs and Foreign Banks operating in India] committed to provide debt funding to Renewable Energy Projects aggregating to over 78.75 GW during the span of next five years.
Loans sanctioned by these Banks & FIs for RE projects are 18.63% 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.
Ministry of New and Renewable Energy had organized First Renewable Energy Global Investor Meet and Expo (RE-INVEST 2015) from 15-17 February, 2015 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.
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 require capital outlay of US $ 160 billion including equity of US $ 40 billion. In addition, huge investment is required for transmission; up-gradation of infrastructure in order to utilize power generated though Renewable Energy sources.
As such Banks &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.
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