BENGALURU: The Ministry of New and Renewable Energy (MNRE) has decided to request the Reserve Bank of India to categorise renewable energy into a separate segment from power, and remove priority sector lending limit for the sector to ensure higher financing.
The decision came after a review meeting held by RK Singh, minister of state for power and new & renewable energy, on Monday with all stakeholders of the renewable energy industry.
The development is expected to help developers get access to easy finance.
Although competitive, current tariff discovered for renewable energy projects are viable, Singh said, because maintenance cost of those projects is also low. Since the efficiency is improving, low tariffs are not an aberration, according to him.
Singh sought to dispel the notion that the tariffs discovered for several renewable energy projects in recent auctions are unviable, pointing out that the maintenance cost of those projects is also low. Since the efficiency is improving, low tariffs are not an aberration, the minister said.
Singh also said MNRE’s nodal agency Solar Energy Corporation of India (SECI) will tie up with state governments for land acquisition to prevent delays. SECI will also enter into tieups for transmission, so delays could be prevented there as well, he said.
Issues related to GST on renewable energy equipment and components were also discussed at the review meeting, according to an MNRE statement.
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