Banks advised not to reject loans for renewable energy projects: govt

New Delhi: The government today said banks have been advised not to reject financing proposals for renewable energy projects on the grounds that power sector as a whole is under stress.

Minister of State for Finance Namo Narain Meena in a written reply to the Lok Sabha said that banks are providing loans to renewable energy projects.[caption id=“attachment_749689” align=“alignleft” width=“380”] Minister of State for Finance Namo Narain Meena. Image courtesy PIB[/caption]

“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,” he said.

Citing RBI data, the minister said that banks’ outstanding credit exposure to power sector stood at Rs 3,28,900 crore at the end of March 2012.

“Banks’ outstanding credit exposure to power sector as on March 2009, 2010 and 2011 were Rs 1,244 billion, Rs 1,878 billion and Rs 2,692 billion, respectively.

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“However, separate data for credit to renewable energy sector is not available with them,” he added.

PTI