Focus on funding renewable energy projects: Piyush Goyal

Minister has asked Power Finance Corp and Rural Electrification Corp asked to fund renewable energy projects. The govt plans to invest worth $1 billion (Rs 6,700 crore)

GN Bureau | July 12, 2016


#Renewable Energy   #Piyush Goyal   #PSU  


The government has asked state-run Power Finance Corp (PFC) and Rural Electrification Corp (REC) to focus on funding renewable energy projects.

The minister for power, coal, renewable energy and mines, Piyush Goyal, on Monday said that the government is contemplating a $1 billion (Rs 6,700 crore) fund to finance renewable energy projects. According to a news report published in the Economic Times, the minister said, “I am waiting for interest rates to come down further which would be the benchmark for the equity fund that we are preparing for the sector.”

REC, at present, finances such projects at rates between 10.5 percent and 11.5 percent, depending on factors like project viability and promoter's strength. Rates on loans to conventional and hydropower projects are higher at 11.75 percent to 13.40 percent.

The move is aimed at giving a boost to the renewable sector as well as utilising the cash that the two financiers will receive in lieu of loans given to state-run power distribution companies post implementation of the Ujwal Discom Assurance Yojana (UDAY). Under the UDAY debt recast scheme, REC and PFC will recover their existing debt exposure to state discoms in cash. The two have an exposure of more than $20 billion to these distribution firms.

The companies plan to utilise the cash to finance energy projects, mainly green energy projects such as solar, wind and biomass plants. Lack of new conventional coal and gas projects by private developers has prompted the two companies to shift focus to renewables.

Currently, such energy projects constitute nearly 10 percent of the loan portfolio of REC and PFC. Goyal said Rajasthan and Haryana have progressed well in revival of their distribution companies.
 

Comments

 

Other News

“Parents need to be taught that each child is special”

It has been a year since you took charge of the new ministry. What is your biggest worry as in charge of education in India? My first priority – and that reflects my worry as well – is to improve the quality of government schools. It’s a tough job. Unfortunately,

Should National List of Essential Medicines be expanded?

Should National List of Essential Medicines be expanded?

First cargo of IndianOil’s crude oil imports from US shipped

 In a big leap aimed at diversifying its crude oil sources and boosting the country’s energy security, IndianOil Corporation has begun crude oil imports from the US. The first cargo of high-sulphur ‘Mars’ crude oil was loaded recently from St. James Port on ‘Bergitta`

Modi keeps his word: Turns up heat on benami properties

When prime minister Narendra Modi spoke about action against benami properties while delivering the I-Day address from the Red Fort ramparts, he was in fact fulfilling a promise he made during the last Mann ki Baat of 2016.   “The law against benami property was lying i

REC posts profit of Rs 1,890 crore

 Rural Electrification Corporation (REC) Limited’s, total income, as on June 30, has risen to Rs 34,614 crore as against Rs 29,952 crore in the previous corresponding quarter. The profit before tax (PBT) for the quarter is Rs 1,890 crore. The enterprise is focused on financing power pr

IRCTC unveils international tour packages

 Indian Railway Catering and Tourism Corporation Ltd. (IRCTC), an Indian Railways’ PSU, has come up with an International tour package based on leisure and pilgrimage theme. IRCTC is one of the biggest e-commerce website across Asia.   There is Ramayana Yat



Video

Modi govt. imposes 1.7k penalty on RIL

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter