The power and renewable energy minister R K Singh recently said that government has estimated an investment of about Rs 4 lakh crore over the course of next three years to meet renewable energy target.
The minister answering a question in Rajya Sabha said “A cumulative renewable energy capacity of 83.38 GW has already been installed in the country up to October, 2019. To achieve the balance target of 91.62 GW, an investment of about Rs 4,14,581 crore has been estimated as capital cost.”
Most of the grid connected renewable energy projects in the country are being implemented by private sector developers selected through transparent bidding process.
In his reply the power minister said that the Indian Renewable Energy Development Agency, a non-banking financial institution under the Ministry of New and Renewable Energy (MNRE), will be financing these projects by raising resources from internal and external sources such as bilateral and multilateral agencies, raising masala bonds from international and domestic market, and by borrowing from banks or financial institutions.
The Reserve Bank of India has also revised the guidelines for all scheduled commercial banks to include renewable energy in the priority sector, in addition to existing categories. The bank loans for solar rooftop systems are being treated as part of home loans with eligible tax benefits.