Indian banks, FIs losing out “big time” by not financing RE sector, says RK Singh

Union Energy Minister RK Singh said Indian banks and financial institutions are “losing a lot of time” by not financing renewable energy projects in India.

The minister said he would urge the Ministry of Finance to provide loans for renewable energy projects under the category of “priority sector lending”.

Singh made the remarks while speaking at a session on ‘green finance’ at the 14th Clean Energy Ministerial Meeting (CEM 14) currently underway here.

Noting that with the exception of the public sector lenders (PFC and REC), Indian financiers have done very little for the Indian renewable energy sector, the minister said that financiers are “missing out on the largest market” in the world.

India will add 50 gigawatts of renewable energy capacity each year, he said, adding, “It will remain the largest market” for many more years.

He added that besides renewable energy, there are lending opportunities for the manufacture of solar energy units and electrolyzers.

India will also export the electrical units and analyzers, Singh said, noting that many countries are apprehensive about buying from China.

The minister stressed that there is no need to worry about financing because sufficient funds for renewable energy projects come from abroad.

“My sector is booming,” he said.

Regarding renewable energy financing being placed under the ‘priority sector’, Singh said, ‘We (the renewable energy sector) have a ‘priority’.

Earlier, while speaking at the session, the former Union Energy Minister, Alok Kumar, who recently left office, noted that the share of Indian public sector banks in renewable energy financing is “small” and said that the Reserve Bank of India should “urge” banks to lend to more Indian renewable energy projects.

However, this would call for stricter disclosure rules for renewable energy companies to follow, Kumar said.