Renewable energy companies are now feeling the pinch of the ongoing crisis in the NBFC sector, with the latter shying away from infrastructure financing in the private sector.
The problem is acute, especially given the fact that it was only NBFCs that were funding infrastructure projects till 2017-18-end in the wake of the banking sector tightening lending on account of NPA woes. From March last year, things started getting bad for NBFCs; the situation was further exacerbated by the blowout of IL&FS.
Clean-energy industry representatives said the NBFC crisis has hit renewable energy companies, which are now facing higher borrowing costs for their greenfield projects. There is an evident liquidity crunch in the NBFC lending ecosystem, and this may push ahead the deadlines for financial closure for some recently-awarded renewable projects, they said.
