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

Dharmendra Pradhan tenders resignation

Dharmendra Pradhan, education minister at the centre of the storm of the NEET paper leak, offered his resignation to the prime minister on Saturday.   He posted a two-page letter on X, saying he was pained by the events of the last ten days. "This is not a matter of personal

Cabinet approves scheme of chemical parks

The union cabinet chaired by the PM has approved Bharat Audyogik Vikas Yojana Rasayan or BHAVYA - Rasayan Scheme for establishing three dedicated Chemical Parks in the country. The Scheme was announced in the Union Budget of FY 2026–27.   The Scheme will have a total financ

Anurag Jain, IAS appointed as Chief Executive Officer, NITI Aayog

 Anurag Jain, a 1989-batch IAS officer of the Madhya Pradesh cadre, has been appointed as the Chief Executive Officer (CEO) of NITI Aayog for a two-year term after serving as the Chief Secretary of Madhya Pradesh. A distinguished administrator with extensive experience in infrastructure, industrial de

Shri Ashok Barnwal, IAS has been appointed as the Chief Secretary of Madhya Pradesh

 Ashok Barnwal, a 1991-batch IAS officer of the Madhya Pradesh cadre, has been appointed as the Chief Secretary of Madhya Pradesh, succeeding Anurag Jain following his appointment as CEO of NITI Aayog. Prior to assuming the state`s top bureaucratic position, Barnwal served as Additional Chief Secretar

PM announces fast-track courts for paper leak cases

Prime minister Narendra Modi on Thursday stated that the government has decided to set up fast-track courts to ensure swift and stringent punishment for those involved in paper leaks. Emphasising that nothing is more important than the welfare and future of the youth, he noted that h

Making India’s textile & apparel sector sustainable

India’s textile and apparel sector sits at the heart of the economy but is constrained by traditional manufacturing approach. It contributes close to 2% of GDP and around 11% of manufacturing gross value added, with GDP share expected to reach 5% by the end of the decade. The sector employs around 45

Upcoming Conferences





Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter