Lok Sabha Question No. 2187 (UNSTARRED), answered on 2019-07-04
Subject: Lending Limit for Renewable Energy Sector
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Girish Bhalchandra Bapat

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENRGY

## LOK SABHA UNSTARRED QUESTION NO. 2187

TO BE ANSWERED ON 04.07.2019

## LENDING LIMIT FOR RENEWABLE ENERGY SECTOR

## 2187. SHRI GIRISH BHALCHANDRA BAPAT

Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:

- (a) whether the Government proposes to achieve 175 GW of renewable energy capacity by 2022;
- (b) if so, the details thereof and the strategy adopted by the Government to achieve the said target;
- (c)  whether the Government proposes to provide reliable, sustainable and affordable electricity to the masses  and  focuses  on  changing  the  energy  mix  towards  green  energy  sources  and  if  so,  the  details thereof;
- (d) whether the Government has requested the Reserve Bank of India for removal of the priority sector lending limit for the renewable energy sector and if so, the details thereof; and
- (e)  whether the Government proposes to encourage the PSBs (Public Sector Banks) to lend more for renewable energy projects and help developers to access easy finance, if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE (I/C) FOR NEW & RENEWABLE ENERGY AND POWER (SHRI R. K. SINGH)

(a) & (b) Yes Sir.  A total of 80.04 GW of Renewable Energy capacity stood installed in the country as on  31st  May,  2019  against  the  target  of  175  GW  renewable  energy  capacity  by  2022.  In  addition, renewable  energy  projects  of  64.77  GW  capacity  are  either  at  various  stages  of  implementation  or bidding.

The strategy adopted by the Government for achieving  renewable energy target, inter alia, includes the following:-

- Waiver of Inter State Transmission System (ISTS) charges and losses for inter-state sale of solar and wind power for projects to be commissioned up to March, 2022.
- Permitting Foreign Direct Investment (FDI) up to 100 percent under the automatic route.
- Notification of standard bidding guidelines to enable distribution licensee to procure solar and wind power at competitive rates in cost effective manner.
- Declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2022.
- Implementation  of  Green  Energy  Corridor  project  to  facilitate  grid  integration  of  large  scale renewable energy capacity addition.
- Notification of standards for deployment of solar photovoltaic systems/devices
- Launch of new scheme for farmers, CPSU Phase II and Solar Rooftop Phase II program.

(c)  As  per  the  Government  of  India's  submission  to  the  United  Nations  Framework  Convention  on Climate Change on Intended Nationally Determined Contribution (INDC), a cumulative electric power capacity of 40% from non-fossil fuel based energy resources is to be achieved by 2030. Accordingly, the Government has planned a target of installing renewable energy capacity of 175 GW for RE sector by the year 2022.

(d) The Government has requested the Reserve Bank of India to consider segregating the exposure in Renewable Energy sector from Power Sector and defining new category 'RE sector'' so that flow of capital for  RE sector is not hampered.

(e)  A  Consultation  meeting  with  stake  holders  was  recently  organized  by  the  Ministry  of  New  & Renewable Energy in New Delhi on 7th May, 2019 to solicit views/suggestions on how to increase the pace  of  installation  of  Renewable  Energy  systems.  Various  issues  relating  to  financing  of  renewable energy  projects  and  facilitating  access  to  easy  finance  for  project  developers  were  discussed  in  the meeting which also had representation from the Public Sector Banks.

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