Lok Sabha Question No. 2163 (UNSTARRED), answered on 2016-03-10
Subject: Funding of Renewable Energy Projects by Banks
Ministry: NEW AND RENEWABLE ENERGY
Asked by: PINAKI MISRA, KONDA VISHWESHWAR REDDY

## GOVERNMENT OF INDIA

## MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED  QUESTION NO. 2163

TO BE ANSWERED ON 10.03.2016

## FUNDING OF RENEWABLE ENERGY PROJECTS BY BANKS

## 2163. SHRI PINAKI MISRA:

SHRI KONDA VISHWESHWAR REDDY:

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

(a)  whether  the  National  and  Foreign  banks  have  offered  to  finance  various  Renewable Energy Projects in the country. If so, the details thereof;

(b) the details of loans sanctioned and disbursed by these banks for solar energy projects in the  country  during  the  last  three  years  and  the  utilization  reported  therefrom  project-wise, State/UT-wise;

(c)  the steps taken by the Government to ensure that these Banks do not get entangled into unnecessary delaying procedural hassles;

(d) whether the Government proposes to provide a single window/nodal agency to these banks for  approval/clearance for developing Renewable Energy Projects; if so, the details thereof; and

(e)  the details of non-performing assets (NPAs) in the renewable energy sector and the steps taken/being taken by the Government to reduce these NPAs?

## ANSWER

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

(a)&(b): 24 Public Sector & 8  Private Sector Banks and 4 Public Sector & 2 Private Sector Non-Banking Financial Companies (NBFCs)have committed for financing renewable energy  projects  of  76352  MW  capacity  with  an  outlay  of  Rs.  3,82,255  crore  over  5  years through  green  commitment  certificates.  These  Banks  and  Financial  Institutions  (FIs)  have supported projects of 25318 MW capacity with sanctioned and released amount of Rs. 63473 crores and 26105 crores respectively, as on 31 December 2015 after giving the commitments. A list containing details of Banks/FIs is given at Annexure I.

Efforts are also being made to mobilise funds for the renewable energy sector from multilateral and bilateral banks such as The World Bank, Asian Development Bank, National Development Bank and Asia Infrastructure Development Bank and are at various stages of approvals.  List of these organisations with funding under consideration is given at Annexure II.

(c): The Government keeps reviewing the progress with banks from time to time.

(d): No proposal at present as banks have their own procedures.

(e): Details  of  Non  -  Performing  Assets  (NPA)  in  respect  of  3  main  Financial Institutions namely - Power Finance Corporation Limited (PFC), India Infrastructure Finance Company Limited (IIFCL) and Rural Electrification Corporation (REC) is given at Annexure III.

*******

Annexure I Annexure-I referred to in reply to parts (a)&(b) of the Lok Sabha Unstarred Question No. 2163 for 10th March, 2016 Status of Implementation of Green Energy Commitments (GEC) for Financing of RE Projects as on December, 2015

## A. Public Sector Banks:

| 1       | 2                             | 3                                                        | 4                                                   | 5                                                   | 6                                                   | 7                                                   | 8                                                   | 9                                     | 10                                   |
|---------|-------------------------------|----------------------------------------------------------|-----------------------------------------------------|-----------------------------------------------------|-----------------------------------------------------|-----------------------------------------------------|-----------------------------------------------------|---------------------------------------|--------------------------------------|
| Sl. No. | Name of the Bank/FI           | Commitment Made to Finance RE Projects inMW (Rs. in Cr.) | Capacity of Renewable Energy Projects Financed (MW) | Capacity of Renewable Energy Projects Financed (MW) | Capacity of Renewable Energy Projects Financed (MW) | Capacity of Renewable Energy Projects Financed (MW) | Capacity of Renewable Energy Projects Financed (MW) | Total Amount Sanctioned (Rs. in Cr. ) | Total Amount Disbursed (Rs. in Cr. ) |
| Sl. No. | Name of the Bank/FI           | Commitment Made to Finance RE Projects inMW (Rs. in Cr.) | Solar                                               | Wind                                                | Small Hydro                                         | Others                                              | Total RE Capacity                                   | Total Amount Sanctioned (Rs. in Cr. ) | Total Amount Disbursed (Rs. in Cr. ) |
| 1       | State Bank of India           | 15,000 (75,000)                                          | 760.90                                              | 311.73                                              | 9.00                                                | 0.00                                                | 1,081.63                                            | 3,964.86                              | 930.59                               |
| 2       | Bank of India                 | 2,000 (10,000)                                           | 738.00                                              | 199.50                                              | 0.00                                                | 0.00                                                | 937.50                                              | 1,297.11                              | 0.00                                 |
| 3       | Bank of Baroda                | 2,500 (12,500)                                           | 261.00                                              | 326.03                                              | 35.00                                               | 20.15                                               | 642.18                                              | 1275.85                               | 310.58                               |
| 4       | State Bank of Bikaner& Jaipur | 244 (1,600)                                              | 56.07                                               | 124.63                                              | 0.00                                                | 9.90                                                | 190.60                                              | 866.64                                | 539.07                               |
| 5       | IDBI Bank                     | 3,000 (14,700)                                           | 91.00                                               | 589.20                                              | 24.00                                               | 0.00                                                | 704.20                                              | 831.95                                | 274.95                               |
| 6       | Oriental Bank of Commerce     | 80 (240)                                                 | 189.51                                              | 233.10                                              | 0.00                                                | 0.00                                                | 422.61                                              | 785.36                                | 49.57                                |
| 7       | Bank of Maharashtra           | 1,500 (7,500)                                            | 190.85                                              | 571.30                                              | 0.00                                                | 0.00                                                | 762.15                                              | 715.20                                | 312.36                               |
| 8       | Syndicate Bank                | 500 (2,500)                                              | 150.11                                              | 116.97                                              | 0.00                                                | 18.50                                               | 285.58                                              | 675.23                                | 347.34                               |
| 9       | Central Bank of India         | 500 # (2,500)                                            | 50.00                                               | 395.10                                              | 0.00                                                | 0.00                                                | 445.10                                              | 630.00                                | 236.69                               |
| 10      | Union Bank Of India           | 1,500 (7,500)                                            | 200.00                                              | 201.40                                              | 0.00                                                | 15.00                                               | 416.40                                              | 586.50                                | 105.55                               |
| 11      | United Bank of India          | 200 (1,000)                                              | 115.00                                              | 309.20                                              | 0.00                                                | 0.00                                                | 424.20                                              | 438.00                                | 101.00                               |
| 12      | Indian Bank                   | 220 (1,100)                                              | 200.00                                              | 323.50                                              | 0.00                                                | 0.00                                                | 523.50                                              | 430.52                                | 72.76                                |

| 1         | 2                          | 3                                              | 4                                                   | 5                                                   | 6                                                   | 7                                                   | 8                                                   | 9                                                   | 10                                   |
|-----------|----------------------------|------------------------------------------------|-----------------------------------------------------|-----------------------------------------------------|-----------------------------------------------------|-----------------------------------------------------|-----------------------------------------------------|-----------------------------------------------------|--------------------------------------|
|           |                            | Commitment                                     | Capacity of Renewable Energy Projects Financed (MW) | Capacity of Renewable Energy Projects Financed (MW) | Capacity of Renewable Energy Projects Financed (MW) | Capacity of Renewable Energy Projects Financed (MW) | Capacity of Renewable Energy Projects Financed (MW) | Capacity of Renewable Energy Projects Financed (MW) |                                      |
| Sl. No.   | Name of the Bank/FI        | Made to Finance RE Projects in MW (Rs. in Cr.) | Solar                                               | Wind                                                | Small Hydro                                         | Others                                              | Total RE Capacity                                   | Total Amount Sanctioned (Rs. in Cr. )               | Total Amount Disbursed (Rs. in Cr. ) |
| 13        | State Bank of Travancore   | 250 (1,250)                                    | 0.00                                                | 916.85                                              | 0.00                                                | 0.00                                                | 916.85                                              | 407.80                                              | 359.77                               |
| 14        | Andhra Bank                | 1,000 (5,000)                                  | 122.50                                              | 24.00                                               | 1.80                                                | 6.00                                                | 154.30                                              | 382.61                                              | 5.00                                 |
| 15        | Punjab National Bank       | 500 (2,500)                                    | 45.00                                               | 20.00                                               | 110.00                                              | 10.00                                               | 185.00                                              | 326.84                                              | 241.05                               |
| 16        | State Bank of Mysore       | 285 (2,000)                                    | 70.00                                               | 278.60                                              | 0.00                                                | 0.00                                                | 348.60                                              | 286.00                                              | 78.52                                |
| 17        | State Bank of Patiala      | 100 (500)                                      | 160.00                                              | 499.70                                              | 0.00                                                | 55.00                                               | 714.70                                              | 284.88                                              | 162.73                               |
| 18        | Canara Bank                | 320 (1,600)                                    | 62.00                                               | 81.30                                               | 0.00                                                | 0.00                                                | 143.30                                              | 224.70                                              | 20.75                                |
| 19        | Indian Overseas Bank       | 400 (2,000)                                    | 205.00                                              | 61.10                                               | 0.00                                                | 7.50                                                | 273.60                                              | 150.11                                              | 2.78                                 |
| 20        | Vijaya Bank                | 200 (1,000)                                    | 0.00                                                | 199.70                                              | 0.00                                                | 0.00                                                | 199.70                                              | 105.80                                              | 0.00                                 |
| 21        | Dena Bank                  | 200 (1,000)                                    | 27.00                                               | 100.80                                              | 0.00                                                | 15.00                                               | 142.80                                              | 99.74                                               | 16.57                                |
| 22        | Corporation Bank           | 1,000 (5,000)                                  | 0.00                                                | 0.00                                                | 25.00                                               | 0.00                                                | 25.00                                               | 46.00                                               | 0.00                                 |
| 23        | UCO Bank                   | 100 (500)                                      | 0.57 (Capacity of 17 projects not mentioned)        | 0.00                                                | 0.00                                                | 0.00                                                | 0.57 (Capacity of 17 projects not mentioned)        | 13.97                                               | 13.97                                |
| 24        | Bharatiya Mahila Bank Ltd. | 50 (250)                                       | 0.00                                                | 0.00                                                | 0.00                                                | 0.00                                                | 0.00                                                | 0.00                                                | 0.00                                 |
| Total (A) | Total (A)                  | 31,649 (1,58,740)                              | 3,694.51                                            | 5,883.71                                            | 204.80                                              | 157.05                                              | 9,940.07                                            | 14,825.67                                           | 4,181.60                             |

Note:

(i) Bhartiya Mahila Bank Ltd. has reported ZERO loan sanctions and ZERO disbursements upto December, 2015.

(ii) ## Information upto December 2015 is awaited/ Reminder sent.

- B. Non-Banking Financing Companies (NBFCs) { Public sector}:

| 1         | 2                                                           | 3                        | 4                                                   | 5                                                   | 6                                                   | 7                                                   | 8                                                   | 9                                     | 10                                   |
|-----------|-------------------------------------------------------------|--------------------------|-----------------------------------------------------|-----------------------------------------------------|-----------------------------------------------------|-----------------------------------------------------|-----------------------------------------------------|---------------------------------------|--------------------------------------|
| Sl. No.   | Name of the Bank/FI                                         | Commitment               | Capacity of Renewable Energy Projects Financed (MW) | Capacity of Renewable Energy Projects Financed (MW) | Capacity of Renewable Energy Projects Financed (MW) | Capacity of Renewable Energy Projects Financed (MW) | Capacity of Renewable Energy Projects Financed (MW) | Total Amount Sanctioned (Rs. in Cr. ) | Total Amount Disbursed (Rs. in Cr. ) |
| Sl. No.   | Name of the Bank/FI                                         | Finance RE Projects inMW | Solar                                               | Wind                                                | Small Hydro                                         | Others                                              | Total RE Capacity                                   | Total Amount Sanctioned (Rs. in Cr. ) | Total Amount Disbursed (Rs. in Cr. ) |
| 1         | Indian Renewable Energy Development Agency Limited (IREDA)$ | 6,000 (30,000)           | 972.00                                              | 761.45                                              | 105.95                                              | 97.00                                               | 1,936.40                                            | 5,764.26                              | 2,925.49                             |
| 2         | India Infrastructure Finance Company Ltd (IIFCL)#           | 4,000 (20,000)           | 729.00                                              | 1,695.15                                            | 24.00                                               | 0.00                                                | 2,448.15                                            | 3,262.05                              | 1,544.86                             |
| 3         | Power Finance Corporation Ltd. (PFC &PFC Green Energy Ltd.) | 3,000 (15,000)           | 419.63                                              | 395.50                                              | 102.70                                              | 183.00                                              | 1,100.83                                            | 1,821.80                              | 1,358.86                             |
| 4         | Rural Electrification Corporation Limited (RECL)            | 1,500                    | 288.06                                              | 22.80                                               | 21.00                                               | 6.00                                                | 337.86                                              | 957.31                                | 249.97                               |
| Total (B) | Total (B)                                                   | 14,500 (72,500)          | 2,408.69                                            | 2,874.90                                            | 253.65                                              | 286.00                                              | 5,823.24                                            | 11,805.42                             | 6,079.18                             |

Note: $  Financing against Bridge Loans, Securitization Loan, Loan towards Advance Payments, Short Term Loans, Line of Credits, Loans for         # Evacuation Facilities & Manufacturing etc. after 15 February, 2015 and Disbursements effected after 15th February, 2015 against Projects Sanctioned prior to 15th February, 2015 included.

## Status of Implementation of Green Energy Commitments (GEC) for Financing of RE Projects As on December, 2015

## C. Private Sector Banks:

| 1         | 2                           | 3                                           | 4                                                   | 5                                                   | 6                                                   | 7                                                   | 8                                                   | 9                                     | 10                                   |
|-----------|-----------------------------|---------------------------------------------|-----------------------------------------------------|-----------------------------------------------------|-----------------------------------------------------|-----------------------------------------------------|-----------------------------------------------------|---------------------------------------|--------------------------------------|
| Sl. No.   | Name of the Bank/FI         | Commitment Made to Finance RE Projects inMW | Capacity of Renewable Energy Projects Financed (MW) | Capacity of Renewable Energy Projects Financed (MW) | Capacity of Renewable Energy Projects Financed (MW) | Capacity of Renewable Energy Projects Financed (MW) | Capacity of Renewable Energy Projects Financed (MW) | Total Amount Sanctioned (Rs. in Cr. ) | Total Amount Disbursed (Rs. in Cr. ) |
| Sl. No.   | Name of the Bank/FI         | (Rs. in Cr.)                                | Solar                                               | Wind                                                | Small Hydro                                         | Others                                              | Total RE Capacity                                   | Total Amount Sanctioned (Rs. in Cr. ) | Total Amount Disbursed (Rs. in Cr. ) |
| 1         | Yes Bank                    | 5,000                                       | 1,011.00                                            | 927.75                                              | 99.00                                               | 0.00                                                | 2,037.75                                            | 9,336.50                              | 4,879.70                             |
| 2         | IndusInd Bank               | 2,000 (10,000)                              | 1,282.80                                            | 325.40                                              | 0.00                                                | 0.00                                                | 1,608.20                                            | 4,617.10                              | 2,412.98                             |
| 3         | ICICI Bank                  | 7,500 (37,500)                              | 329.65                                              | 465.75                                              | 0.00                                                | 0.00                                                | 795.40                                              | 3,694.41                              | 624.46                               |
| 4         | Axis Bank                   | 2,000 (10,000)                              | 25.00                                               | 397.00                                              | 0.00                                                | 0.00                                                | 422.00                                              | 2,242.00                              | 998.49                               |
| 5         | HDFC Bank                   | 400 (2,000)                                 | 50.00                                               | 6.00                                                | 0.00                                                | 0.00                                                | 56.00                                               | 232.00                                | 103.46                               |
| 6         | The Lakshmi Vilas Bank Ltd. | 200 (1,000)                                 | 3.00                                                | 280.25                                              | 15.00                                               | 9.00                                                | 307.25                                              | 200.13                                | 134.73                               |
| 7         | South Indian Bank           | 600 (3,000)                                 | 0.00                                                | 459.90                                              | 0.00                                                | 0.00                                                | 459.90                                              | 163.45                                | 159.03                               |
| 8         | Coastal Local Area Bank     | 3                                           | 0.00                                                | 0.00                                                | 0.00                                                | 0.00                                                | 0.00                                                | 0.00                                  | 0.00                                 |
| Total (C) | Total (C)                   | 17,703 (88,515)                             | 2,701.45                                            | 2,862.05                                            | 114.00                                              | 9.00                                                | 5,686.50                                            | 20,485.59                             | 9,312.85                             |

Note:

(i) Coastal Local Area Bank has reported ZERO loan sanctions and ZERO disbursement upto July, 2015.

#   Information upto December 2015 is awaited. Reminder sent.

## D. Non-Banking Financing Companies (NBFCs) { Private Sector}:

| 1         | 2                                       | 3                                                         | 4                                                         | 5        | 6           | 7      | 8                 | 9                                     | 10                                   |
|-----------|-----------------------------------------|-----------------------------------------------------------|-----------------------------------------------------------|----------|-------------|--------|-------------------|---------------------------------------|--------------------------------------|
| Sl. No.   | Name of the Bank/FI                     | Commitment Made to Finance RE Projects in MW (Rs. in Cr.) | Capacity of Renewable Energy Projects Financed (MW) Solar | Wind     | Small Hydro | Others | Total RE Capacity | Total Amount Sanctioned (Rs. in Cr. ) | Total Amount Disbursed (Rs. in Cr. ) |
| 1         | L &TInfrastructure Finance Company Ltd. | 6,500 (32,500)                                            | 701.35                                                    | 2,418.30 | 128.40      | 10.00  | 3,258.05          | 13,807.40                             | 4,263.00                             |
| 2         | PTC India Financial Services Ltd.       | 6,000 (30,000)                                            | 339.50                                                    | 270.70   | 0.00        | 0.00   | 610.20            | 2,549.15                              | 2,268.98                             |
| Total (D) | Total (D)                               | 12,500 (62,500)                                           | 1,040.85                                                  | 2,689.00 | 128.40      | 10.00  | 3,868.25          | 16,356.55                             | 6,531.98                             |

## Status of Implementation of Green Energy Commitments (GEC) for Financing of RE Projects -Public Sector and Private Sector Banks & FIs As on December, 2015

| 1                                 | 2                                         | 3                                                       | 4                                                   | 5                                                   | 6                                                   | 7                                                   | 8                                                   | 9                                     | 10                                   |
|-----------------------------------|-------------------------------------------|---------------------------------------------------------|-----------------------------------------------------|-----------------------------------------------------|-----------------------------------------------------|-----------------------------------------------------|-----------------------------------------------------|---------------------------------------|--------------------------------------|
| Sl. No.                           | Category of Banks& Financial Institutions | Commitment Made to Finance RE ProjectsinMW (Rs. in Cr.) | Capacity of Renewable Energy Projects Financed (MW) | Capacity of Renewable Energy Projects Financed (MW) | Capacity of Renewable Energy Projects Financed (MW) | Capacity of Renewable Energy Projects Financed (MW) | Capacity of Renewable Energy Projects Financed (MW) | Total Amount Sanctioned (Rs. in Cr. ) | Total Amount Disbursed (Rs. in Cr. ) |
| Sl. No.                           | Category of Banks& Financial Institutions | Commitment Made to Finance RE ProjectsinMW (Rs. in Cr.) | Solar                                               | Wind                                                | Small Hydro                                         | Others                                              | Total RE Capacity                                   | Total Amount Sanctioned (Rs. in Cr. ) | Total Amount Disbursed (Rs. in Cr. ) |
| A                                 | Public Sector Banks                       | 31,649 (1,58,740)                                       | 3,694.51                                            | 5,883.71                                            | 204.80                                              | 157.05                                              | 9,940.07                                            | 14,825.67                             | 4,181.60                             |
| B                                 | Public Sector NBFCs                       | 14,500 (72,500)                                         | 2,408.69                                            | 2,874.90                                            | 253.65                                              | 286.00                                              | 5,823.24                                            | 11,805.42                             | 6,079.18                             |
| C                                 | Private Sector Banks                      | 17,703 (88,515)                                         | 2,701.45                                            | 2,862.05                                            | 114.00                                              | 9.00                                                | 5,686.50                                            | 20,485.59                             | 9,312.85                             |
| D                                 | Private Sector NBFCs                      | 12,500 (62,500)                                         | 1,040.85                                            | 2,689.00                                            | 128.40                                              | 10.00                                               | 3,868.25                                            | 16,356.55                             | 6,531.98                             |
| Grand Total (A) + (B) + (C) + (D) | Grand Total (A) + (B) + (C) + (D)         | 76,352 (MW) (3,82,255)                                  | 9,845.50                                            | 14,309.66                                           | 700.85                                              | 462.05                                              | 25,318.06                                           | 63,473.23                             | 26,105.61                            |

## Annexure-II referred to in reply to parts (a)&(b) of the Lok Sabha Unstarred Question No. 2163 for 10th March, 2016 List of Multilateral and Bilateral Organisation and Proposed Funding for RE Sector

## A. Solar Parks

|   Sl. No. | Proposal                                                                                                                                                                                                | Financing Agency   | Financial Assistance Sought                    | Status              |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|------------------------------------------------|---------------------|
|         1 | Financing of shared infrastructure of solar parks in Karnataka, Madhya Pradesh, Andhra Pradesh, Telangana, Odisha, Himachal Pradesh, Chhattisgarh and any other upcoming Solar Parks under MNRE Scheme. | World Bank         | World Bank: 150 CTF: 50 TOTAL: 200 million USD | Under approval      |
|         2 | Financing of shared infrastructure of solar parks in Uttar Pradesh, Kerala, Chhattisgarh, Rajasthan and Tamil Nadu                                                                                      | ADB                | ADB: 50 CTF: 50 TOTAL: 100 million USD         | Under approval      |
|         3 | Investment for innovation in Solar Power and Hybrid Technologies by SECI                                                                                                                                | World Bank         | World Bank: 180 CTF: 20 TOTAL: 200 million USD | Under consideration |
|         4 | Proposal for creating infrastructure for evacuation of power from solar parks by PGCIL                                                                                                                  | World Bank         | World Bank: 270 CTF: 30 TOTAL: 300 million USD | Under approval      |
|         5 | Proposal for creating infrastructure for evacuation of power from solar parks by PGCIL                                                                                                                  | ADB                | ADB: 350 CTF: 50 TOTAL: 400 million USD        | Under approval      |

## B. Solar Rooftop

- i) World Bank - USD 500 million + Clean Technology Fund of USD 120 million
2. ii) Asian Development Bank  - USD 500 million
3. iii) KfW, Germany - One Billion Euro (for solar rooftops, decentralized applications and solar parks)

## Annexure-III referred to in reply to part (e) of the Lok Sabha Unstarred Question No. 2163 for 10th March, 2016

## Details of Non - Performing Assets (NPA) in Renewable Energy Sector Projects

| Organization                                 |   No. of RE Projects | Amount Sanctioned (Rs. in crore)   |   Amount Disbursed (Rs. in crore) | Non-Performing Assets (NPA)                                      |
|----------------------------------------------|----------------------|------------------------------------|-----------------------------------|------------------------------------------------------------------|
| Power Finance Corporation Limited            |                   42 | 1,836                              |                             999   | Nil                                                              |
| Rural Electrification Corporation            |                   14 | 1005.31                            |                             521.7 | 5 Borrowers for a total outstanding loan value of Rs.40.33 crore |
| India Infrastructure Finance Company Limited |                   25 | 1,626                              |                             687   | Nil                                                              |