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

COP28 discusses climate resilient development in Himalayas

Impacts and implications of Climate Change Vulnerability in the Himalayan Region and ways of creating ‘Climate Resilient Development in Indian Himalayan Region by making mountain communities green and resilient were discussed the side event hosted at the India pavilion at the UN Climate Conference CO

Air Pollution: What needs to be done to tame the silent killer

Air pollution in Delhi has been in headlines, as every year in recent times. Mumbai too has suffered from air pollution, despite being a coastal city. Apart from many other metros such as Bangalore and Kolkata, tier-I and -II cities and rural areas also have high pollution levels. Every year reports and st

Free food grains for 81.35 cr beneficiaries for five years

The central government will provide free food grains to about 81.35 crore beneficiaries under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) for a period of five years with effect from January 1, 2024, the cabinet decided on Wednesday. Terming it as a “historic decision”, a

“I wrote ‘Survival at Stake’ to provide food for thought about solutions”

Survival at Stake: How Our Treatment of Animals Is Key to Human Existence By Poorva Joshipura HarperCollins, 328 pages, Rs 499 With science now recognising animal consciousness, intelligence, emotion, and even morality, there must rise an awareness of

‘Bon Voyage’ through the Arctic: Exploring new horizons for India

India`s tryst with trade through the Arctic regions, including the Northern Sea Routes (NSR), has become an impact-making endeavor recently. The Arctic of yore is now a pivot – point of geopolitics, of climate change discussions, and for economic opportunities; 40% of oil and gas reserves said to be

Demystifying Contemporary Finance Theory and other lessons in investment

Investing Decoded: Simple Path To Building A Portfolio In Millions By Anirudh Rathore Penguin India, 320 pages, Rs 499

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter