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
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.
Random call drops across cellular networks has been a major nuisance for consumers. Despite the advent of technologies like 4G, 5G and users upgrading their phones, they continue face the same old problem of call drops. Earlier, with 2G, calling was the primary service from the mobile telephony firms, howe
The union cabinet on Thursday approved the establishment of three semiconductor units under ‘Development of Semiconductors and Display Manufacturing Ecosystems in India’. Involving a total investment of nearly Rs 1.26 lakh crore, the three units -- two in Gujarat, one in Assam – wil
Mumbai is one of busiest airports in India, handling a large volume of domestic and international flights including military, non-scheduled and general aviation flights. Mumbai`s Chhatrapati Shivaji Maharaj International Airport (CSMIA) has two intersecting runways which cannot be operated
BrihanMumbai municipal corporation is floating nearly 900 tenders worth of Rs 150 crore in the next 10 days, but that is only for ward-level civic works, the BMC clarified on Monday, reacting to reports in a section of media. “Since there are 25 wards in BMC, it involves m
In a first-of-its-kind initiative, Election Commission of India (ECI) on Monday signed a memorandum of understanding (MoU) with two prominent organisations, the Indian Banks’ Association (IBA) and the Department of Posts (DoP), to amplify its voter outreach and awareness efforts ahead of the forthcom
Snakes, Drugs and Rock ’N’ Roll: My Early Years By Romulus Whitaker with Janaki Lenin HarperCollins, 400 pages, Rs 699