According to reports, at a time when renewable energy industry is reeling under high debt pressures, Bloomberg UTV has learnt that the Ministry of Renewable Energy has made a strong pitch to the Department of Financial Services (DFS) for making bank funding easier for projects.
According to sources, the Renewable Energy Ministry is batting for more financial support, as currently the sector does not have enough bank funding. However, banks see project risk in the sector, sources added.
Sources further said that the ministry has asked DFS for separate bank limits and financing instruments for the renewable energy sector.
In addition, the Planning Commission has also come in support of the ministry. However, DFS has said that the final call will be taken by the Reserve Bank of India and/or the Prime Minister’s Office.