Shri R.K. Singh, Union Minister of State (Independent Charge) for Power and New & Renewable Energy, today chaired a high-level meeting to review critical issues pertaining to the Renewable Energy (RE) sector.
The meeting was attended by senior officials and stakeholders, including the Secretary, Ministry of New and Renewable Energy (MNRE), senior officials from MNRE, and representatives from the Department of Economic Affairs, Department of Expenditure, Department of Financial Services, Department of Revenue, as well as public and private sector banks and financial institutions.
During the meeting, it was decided that MNRE would follow up with the Reserve Bank of India (RBI) for the removal of the priority sector lending limit for the renewable energy sector. This move is expected to encourage public sector banks to enhance lending to RE projects and improve access to affordable finance for developers.
The Minister also urged banks and financial institutions to classify renewable energy as a separate sector, distinct from the conventional power sector, to enable smoother and more targeted flow of funds to RE projects. He emphasised that the tariffs discovered for renewable energy projects are viable, given the low operation and maintenance costs over the long term. Shri Singh further noted that while the cost of renewable energy technologies continues to decline, the efficiency of RE equipment is steadily improving, making lower tariffs sustainable rather than anomalous. He appealed to banks to proactively support lending to the RE sector.
Addressing concerns related to delays in land acquisition, the Minister stated that the Solar Energy Corporation of India (SECI) would coordinate with State Governments to facilitate land availability on a lease basis, eliminating the need for upfront land payments. SECI will also ensure transmission tie-ups at the bidding stage. Banks and financial institutions were advised to collaborate with SECI to offer pre-determined loan products to successful bidders.
