Bank Credit to Renewable Energy Sector

The banks are providing loans to renewable energy projects in the country. Reserve Bank of India (RBI) has informed that they maintain data on the power sector as a whole which includes renewable energy projects. Banks’ outstanding credit exposure to power sector at the end of March 2012 was Rs. 3289 billion. Banks’ outstanding credit exposure to power sector as on March 2009, 2010 and 2011 were Rs. 1244 billion, Rs. 1878 billion and Rs. 2692 billion respectively. However, separate data for credit to renewable energy sector is not available with them.

To promote clean energy, Banks have been advised by the Government to play a pro-active role in financing renewable energy projects and not to reject any proposal for financing otherwise viable renewable energy project on the ground that power sector as a whole is under stress.

This was stated by Minister of State for Finance, Shri Namo Narain Meena, in written reply to a question in the Lok Sabha today.

DSM/RS/ka

(Release ID :95541)