Indian minister’s renewables financing calls hard to enact, says analyst

Facebook
Twitter
LinkedIn
Reddit
Email
ndian power minister R.K. Singh was clean energy developers to have easier access to finance. Credit: MNRE

Indian power minister R.K. Singh has made various recommendations to ease financing troubles in the clean energy sector, but the calls emulate previously failed attempts, one analyst has said.

In a meeting reviewing problems in the clean energy sector, Singh said that the Ministry of New and Renewable Energy (MNRE) should follow up with the Reserve Bank of India (RBI) to remove the priority sector lending limit for the renewables sector in order to encourage public sector banks to lend more for clean energy projects and help developers access easy finance.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

“This is not the first time that this subject has come up,” Vinay Rustagi, managing director of consultancy firm Bridge to India, told PV Tech. “Every time they have financing challenges there are the same kind of recommendations or requests that come up from the developers and MNRE etc., but unfortunately priority sector and some of the other issues in terms of availability of debt financing – they are all decisions taken by Ministry of Finance and the Reserve Bank of India for the entire sector and companies across the whole spectrum, not just the renewable sector. So, we see absolutely no possibility of these requests being accommodated.”

Rustagi noted that the same topics and requests have been raised at least three times in the last five years to no avail.

Once again, like many renewables advocates over recent years, Singh called for financial Institution to categorize renewables in a separate sector from the power sector so that funds would flow to renewable energy projects. Noting lowering clean energy equipment costs – PV module prices continue to fall – as well as low maintenance costs in the long run, Singh sought to assure banks the current low tariffs being discovered in the sector are here to stay.

As Bridge to India mentioned in its latest 'India Solar Compass', land acquisition is a major problem for developers at present, alongside network connectivity, delayed payments and tender cancellation issues. Singh said that Solar Energy Corporation of India (SECI) would be working with state governments on finding suitable land, with a focus on land leases to avoid upfront payments. He also asked banks to partner with SECI to provide predetermined loans to successful bidders in its tenders.

Read Next

June 9, 2025
Saatvik Solar, a unit of Saatvik Green Energy Limited (SGEL), is building a 4.8GW solar cell and 4GW module manufacturing facility in Ganjam district of Odisha.
June 5, 2025
Solar manufacturer Involt Energy has broken ground on its first solar cell manufacturing plant in the western Indian state of Gujarat, with an initial annual nameplate capacity of 1.78GW. 
June 5, 2025
Indian solar module manufacturer Vikram Solar has received final approval from the Securities and Exchange Board of India (SEBI) to proceed with its initial public offering (IPO) and raise capital through the public markets.
June 5, 2025
Investment in clean energy and grids will reach US$2.2 trillion in 2025, double the expected investment into fossil fuels this year, according to data from the International Energy Agency (IEA).
June 2, 2025
Arctech has partnered with ACME Cleantech Solutions to provide 175MW worth of solar trackers for an upcoming facility in Duqm, Oman.
May 30, 2025
Waaree Solar Americas – a subsidiary of Indian solar manufacturer Waaree Energies – has signed a 586MW solar module supply agreement with North Carolina-based Pine Gate Renewables.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
June 17, 2025
Napa, USA
Upcoming Webinars
June 30, 2025
10am PST / 6pm BST
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
September 16, 2025
Athens, Greece