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

What makes Sundargarh the cradle of hockey in India

Neha Lakra, 20, doesn’t forget to practise hockey, at least for four hours, every day. Whether at home or at the Panposh sports hostel in Rourkela where she is training under the guidance of coaches, her routine doesn’t change. “I can’t sleep unless I have worked on the ground,&rdqu

Where the true sadhana of Vedanta is to be found

Somewhere Among the Stars: Reflections of a Mystic By Adi Varuni Kali/BluOne Ink, 282 pages, Rs 395 Decades ago, when an unknown N

India celebrates National Voters’ Day

The 13th National Voters’ Day was celebrated across the country Wednesday with president Droupadi Murmu gracing the national event held here. Kiren Rijiju, union minister for law & justice, was the guest of honour. The chief election commissioner, Rajiv Kumar, election commissioners Anup Chandra

INS Vagir to give fillip to Navy: Admiral Hari Kumar

The Indian Navy commissioned its fifth stealth Scorpene class Submarine INS Vagir on Monday at the Naval Dockyard, Mumbai in the presence of Admiral R Hari Kumar, Chief of the Naval Staff. Vagir was launched on November 12, 2020, under Project 75 (P75) and post completion of sea trials it w

Uddhav joins hands with Prakash Ambedkar ahead of BMC polls

Ahead of the Mumbai civic polls, former Maharashtra chief minister Uddhav Thackeray on Monday announced an alliance with Prakash Ambedkar`s Vanchit Bahujan Aghadi (VBA). Addressing a joint press conference, Thackeray said their grandfathers, Keshav Thackeray and Dr. B.R. Ambedkar, were conte

How women leaders enable collective action at local level

Ela R. Bhatt, the founder of SEWA, once said, “There is ample proof to demonstrate that women can and do build strong and vital organizations around issues that relate to them, and find viable solutions out of their own experiences.” Women Leadership Schools (WLSs) promoted by Se

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