Honoring their commitment toward providing finance to renewable energy projects, Indian banks and financial institutions have sanctioned large sums of debt finance over the last 13 months.
The Ministry of New and Renewable Energy has announced that Indian banks and non-banking financial institutions sanctioned Rs 71,200 crore (over $10 billion) as debt finance to renewable energy projects since February 2015.
Most of this finance has been approved for solar power projects. Of the total amount sanctioned, Rs 29,500 crore ($4.4 billion) have already been disbursed.
Banks and financial institutions had committed to provide finance for 76,352 MW of renewable energy capacity. The total amount committed by the 40 participants entities was Rs 382,255 crore. The commitments have been made by 24 public sector banks, 8 private sector banks, 4 public sector and 2 private sector financial institutions during the RE-INVEST international investors summit organized by the MNRE in February last year.
The financial support offered by banks to renewable energy projects is significant, especially after several banks had sounded alarm over existing power sector loans turning into non-performing assets.
India has set a target to have an installed renewable energy capacity of 175 GW by March 2022, including 100 GW of solar power capacity and 60 GW of wind energy capacity.
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