Indian Gov. to Increase Funds for Solar Projects
In a move to help the growth of solar projects in India, the government may supply the banks and finance companies with Rs 1,500 crore over the next 2 years, in order for them to lend money for solar energy projects. An Indian Government official also added the money would be loaned at a rate of 5%.
The money is aimed for small solar projects who are adding up to 200 mw of solar power, by companies like Sidbi, Nabard and the National Housing Bank. The funding will come through the Indian Renewable Energy Department Agency (IREDA), one of the branches of the renewable energy ministry. The agency will also provide money to state-run banks in urban areas at a rate of 2%.
Solar projects are commencing under Phase 1 of the national solar mission, and the money will allow the more cautious bankers to lend more money to renewable energy companies. The loans approved by the IREDA have improved from around Rs 1,800 crore in 2009-10 to Rs 2,300 crore this year.