Lok Sabha Question No. 2905 (UNSTARRED), answered on 2025-12-17
Subject: Gap in Investment in Renewable Energy
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Shri P V Midhun Reddy

## GOVERNMENT OF INDIA

## MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA

## UNSTARRED QUESTION NO. 2905

ANSWERED ON 17.12.2025

## GAP IN INVESTMENT IN RENEWABLE ENERGY

## 2905. SHRI P V MIDHUN REDDY

Will the minister of new and renewable energy be pleased to state:

- (a) Whether it is a fact that there is a huge gap between the required and actual investment for Renewable Energy capacity addition in the country  and if so, the details thereof;
- (b) The details of the required annual investment and the actual annual investment in the sector during the last five years;
- (c) The steps taken by the Government to find alternative financing mechanisms;
- (d) Whether the Government has considered the possibility of prescribing banks and financial institutions to invest a certain percentage of their investments in renewable energy through a Renewable Finance Obligation (RFO); and
- (e) If so, the details thereof and if not, the reasons therefor?

## ANSWER

## THE MINISTER OF  STATE  FOR NEW & RENEWABLE ENERGY AND POWER

## (SHRI SHRIPAD YESSO NAIK)

(a) & (b) Over the last five financial years, a cumulative amount of about Rs. 7.16 lakh crore has been deployed in the Renewable Energy (RE) sector by Public Sector Banks, IREDA, PFC, REC,  SIDBI,  IIFCL  and  NaBFID.  Break-up  of year-on-year capital  deployed  by  these institutions is placed at Annexure-1.

The investment in the RE sector has increased considerably from Rs.0.66 Lakh crores in 202021  to  Rs.2.68  lakh  crores  in  2024-25  although  higher  mobilisation  of  RE  finance  to  meet national targets, particularly in emerging segments such as energy storage, green hydrogen, offshore wind, and transmission infrastructure is required.

As per IREDA's report titled 'Investment and Financing in RE and Associated Infrastructure,' India requires an estimated Rs. 30.5 lakh crore from FY 24 till FY 30 to achieve 500 GW of non-fossil fuel-based power capacity.

(c)  to  (e)  Government  has  taken  various  steps  to  increase  deployment  of  investment  in Renewable Energy sector including allowing 100% Foreign Direct Investment (FDI) in the sector under automatic route and raising, and allocating funds using Sovereign Green Bonds.

Further, Reserve Bank of India (RBI) has recently enhanced the eligibility limit of priority sector classification for bank loans up to Rs. 35 crore to borrowers for renewable energy-based power.

No proposal on Renewable Energy Finance Obligation (RFO) has yet been finalized by the Government.

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## Annexure referred to in part (a) & (b) of Lok Sabha Unstarred Parliament Question No. 2905 for 17.12.2025

## ANNEXURE - 1

| Amt. in Rs. Cr.                         | Amt. in Rs. Cr.   | Amt. in Rs. Cr.   | Amt. in Rs. Cr.   | Amt. in Rs. Cr.   | Amt. in Rs. Cr.   | Amt. in Rs. Cr.   |
|-----------------------------------------|-------------------|-------------------|-------------------|-------------------|-------------------|-------------------|
| Institution/s                           | 2020-21           | 2021-22           | 2022-23           | 2023-24           | 2024-25           | Total             |
| PFC                                     | 5489              | 7022              | 15112             | 18941             | 31695             | 78259             |
| REC                                     | 3263              | 3404              | 11209             | 15822             | 25608             | 59306             |
| IREDA                                   | 8814              | 15957             | 21301             | 24496             | 29882             | 100450            |
| Public Sector Banks+IIFCL+SID BI+NaBFID | 42583             | 38113             | 54750             | 92559             | 147417            | 375422            |
| FDI                                     | 5916              | 11927             | 20089             | 31162             | 33567             | 102661            |
| Total                                   | 66065             | 76423             | 122461            | 182980            | 268169            | 716098            |