The Stress Marks!
India's power sector is in a catch-22 situation. A sound analysis of the power sector affirms that the sector is in the ICU where 78,000 MW of projects are under stress; and approximately Rs 1,200 billion worth unviable projects and PPAs are signed for a mere 7,000 MW.
Banks, FIs provide over Rs.78,000 cr for clean energy projects
Banks and financial institutions (Fis) have sanctioned about Rs.78,830 crore funding for clean energy projects, of which Rs.33,482.83 crore has been released till March end this year, Minister of New and Renewable Energy Piyush Goyal informed the Parliament.
The Cash Crunch
Public sector banks in India are staring at humongous piles of bad debts, delinquent loans are rising unabated. Ballooning bad debts have caused 10 Indian state-owned banks to report losses of a whopping Rs.153 billion for the March, 2016 quarter. India Ratings, a Fitch associate, estimates that 21 per cent of the total bank credit is stressed.
Banks, NBFCs to finance 76,000-MW CE projects
Public and private banks as well as non-banking finance companies (NBFCs) have committed to finance clean energy (CE) projects of 76,532 MW, with an outlay of Rs.3.82 lakh crore
The Government has put special emphasis on the re sector
Renewable energy projects are a part of sectors eligible for funding from IIFCL and we have so far made gross sanctions of about Rs 4,000 crore to renewable energy projects which include solar, wind small and large hydro projects.
Power 20:20 | Power Finance Corporation (PFC)
PFC was set up in 1986 as a financial institution dedicated to power sector financing and committed to the integrated development of the power & associated sectors. PFC is a Navratna Company and the largest NBFC in India was incorporated