Connect with us

Hi, what are you looking for?

Make in India logo with a backdrop of solar panels (Source)

Green Economy

India Plans $1 Billion Equity Fund For Renewable Energy Projects

As competition among renewable energy project developers in India continues to increase the Indian Government is planning to step up investment in the sector to keep the momentum going.

The Indian Minister for Power, Coal, and Renewable Energy, Piyush Goyal, recently announced that his government will soon float an equity fund for investment in renewable energy projects of around $1 billion, and will initially invest in projects developed by state-owned companies.

While the minister did not give any further details about the fund, it may function on the lines of UK’s Green Investment Bank or other similar investment programs. The minister also did not inform how the corpus of the equity fund would be be accumulated, however, he did mention the National Clean Energy Fund during the announcement. Revenue collected from the coal tax (at ~$3.0/tonne) is pooled into the National Clean Energy Fund. The government expects to collect $4 billion a year through the coal tax over the next 3-4 years. While the fund remains largely under-utilised, especially for renewable energy projects, the government now seems to have set its priorities right for its utilisation.

A number of state-owned companies and organisations have been assigned targets to set up renewable energy projects, especially solar power projects. Coal India Limited, NTPC Limited, NHPC Limited, Neyveli Lignite Corporation, and the Indian armed forces have been assigned targets to set up solar power projects. While arranging debt financing for such projects would not be an issue, these organisation may face hurdles in financing the equity portion of the projects, thus the proposed equity fund will prove critical for them.

India has set eyes on the target of 175 GW operational renewable energy capacity by 2022. This includes 100 GW installed solar power capacity, 60 GW wind energy capacity, and 15 GW from other renewable energy technologies like biomass, small hydro, etc. The Indian government has also asked several state-owned organisations to raise funds for renewable energy projects through green bonds.

Don't want to miss a cleantech story? Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Written By

An avid follower of latest developments in the Indian renewable energy sector.


You May Also Like


Although most vehicular traffic in India is two- and three-wheeled, it is still exciting to see the numbers of four-wheeled personal vehicles going electric...


As the world accelerates the transition to electric vehicles, it is important for the world’s largest markets to lead the way in terms of...


At the coal face of a conference that involved governmental figures, academics, logistics customers and OEMs, the detailed technical conversations are almost all about...


After a very slow start, the Indian battery-electric car market is starting to get exciting. BYD is expanding its presence in the country, shifting...

Copyright © 2023 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.