In a bid to ramp up the renewable energy projects in India, the Ministry of New and Renewable Energy (MNRE) has reportedly made a strong pitch with the Department of Financial Services (DFS) to allow smooth bank funding.
At a time when renewable energy sector is reeling under high debt, Bloomberg UTV has reported that MNRE has upheld the cause to the DFS. Sources have reported to the channel that MNRE has sought more financial support, as the sector is short of enough bank funding at the given date. The banks, one the other hand, see risks in the projects of the sector.
Sources also added that MNRE has also asked DFS for separate bank limits and financing instruments for the renewable energy sector. The DFS however, has said that the Reserve Bank of India and/or the Prime Minister’s Office will take the final call. The Planning Commission will also support the ministry, according to the sources.