PMO steps in to ease supply of credit for green energy firms
New Delhi: The Prime Minister’s Office has intervened to help ease credit supply to renewable energy firms, as the government moves to ensure that India’s efforts to emerge as a clean energy champion are not undermined by a lack of access to funds.
The PMO has asked federal policy think tank NITI Aayog to assess the situation after debt financing for green energy projects dried up with large banks such as State Bank of India (SBI) declining to fund projects that have committed to sell power at less than ₹3 per unit, two government officials said on condition of anonymity.
Sanction of funds by sectoral lenders such as Power Finance Corp. (PFC) and REC Ltd has also slowed down after the former bought a controlling stake in state-run rival REC.
