Lok Sabha Question No. 3940 (UNSTARRED), answered on 2015-08-13
Subject: Low Cost Financing for Renewable Energy
Ministry: NEW AND RENEWABLE ENERGY
Asked by: VIJAY KUMAR HANSDAK

## LOK SABHA UNSTARRED QUESTION NO.3940

## TO BE ANSWERED ON 13-08-2015

## Low Cost Financing for Renewable Energy

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| SHRI VIJAY KUMAR HANSDAK                                                                                                                                                                                                                                                                                                                                                               | SHRI PIYUSH GOYAL, MINISTER OF STATE FOR POWER, COAL & NEW AND RENEWABLE ENERGY (INDEPENDENT CHARGE)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| (a) : the initiatives being taken by the Government in coordination with different Ministries/Departments to mobilise low cost financing for renewable energy projects; (b) : whether the Government is any measures to increase the and cost effectiveness of loans renewable energy in rural areas, through Rural Electrification Corporation; and (c) : if so, the details thereof? | taking availability for the (a):The Government has taken following major initiatives in coordination with different Ministries/Departments for mobilizing the low cost financing for renewable energy projects which inter-alia includes low cost borrowing through multi-lateral and bi- lateral agencies i.e. World Bank, Asian Development Bank, KfW, a Development Bank of Germany, etc.; inclusion of Renewable Energy Projects in Priority Sector Lending Norms of Commercial Banks; and approval forissuance of tax free infrastructure bonds for funding renewable energy projects during the FY 2015- 16. (b) & (c):Rural Electrification Corporation (REC) is providing Renewable Energy loans at the rate of interest which is 0.75% less than the Conventional Generation Projects. Moreover, there are no restrictions on the loan amount for Renewable Energy Projects and all projects found viable are eligible for funding.Further, in remote villages, Government is also providing grant through REC for Decentralized Distributed Generation under DeendayalUpadhyaya Gram JyotiYojana (DDUGJY). |

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED  QUESTION NO. 3940

TO BE ANSWERED ON 13.08.2015

## LOW COST FINANCING FOR RENEWABLE ENERGY

## 3940.  SHRI VIJAY KUMAR HANSDAK:

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

- (a) the initiatives being taken by the Government in coordination with different Ministries/Departments to mobilise low cost financing for renewable energy projects;
- (b) whether  the  Government  is  taking  any  measures  to  increase  the  availability  and  cost effectiveness  of  loans  for  renewable  energy  in  rural  areas,  through  the  Rural  Electrification Corporation; and
- (c) if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE FOR POWER, COAL & NEW AND RENEWABLE ENERGY (INDEPENDENT CHARGE) (SHRI PIYUSH GOYAL)

- (a): The  Government  has  taken  following  major  initiatives  in  coordination  with  different Ministries/Departments for mobilizing the low cost financing for renewable energy projects which inter-alia includes  low  cost  borrowing  through  multi-lateral  and  bi-lateral  agencies  i.e.  World Bank, Asian Development Bank, KfW Germany, etc.; inclusion of Renewable Energy Projects in Priority  Sector  Lending  Norms  of  Commercial  Banks;  and  approval  for  issuance  of  tax  free infrastructure bonds for funding renewable energy projects during the FY 2015-16.

(b)&(c): Rural  Electrification  Corporation  (REC)  is  providing  Renewable  Energy  loans  at the  rate  of  interest  which  is  0.75%  less  than  the  Conventional  Generation  Projects.  Moreover, there are no restrictions on the loan amount for Renewable Energy Projects and all projects found viable  are  eligible  for  funding.  Further,  in  remote  villages,  Government  is  also  providing  grant through REC for Decentralized Distributed Generation under Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY).

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