Mumbai: Commercial banks are increasingly wary of lending to thermal power projects, with a recent study finding a significant drop in state-owned financing of coal projects.
The third annual Coal vs Renewable Financial Analysis 2019 found that public funding for coal power projects in India had declined for a second consecutive year.
The report found a 126% drop in funding from commercial banks to coal compared to 2019, following a 90% decrease in 2018 over the previous year. Lending to renewable energy projects saw a minor contraction of 6% year-on-year, and received 95% of the total lending to energy projects.
