7 months ago
Renewable Energy Firms Push for Green Bank
Some big companies that make clean energy want the government to create a special bank just for green projects.
This bank, called a Green Bank, would help these companies get money for things like solar power and electric cars.
The companies say the bank should give loans for a long time, like 25 or 45 years, and the interest rates should be low so the projects don't cost too much.
Some people think this is a good idea because it would help smaller companies too.
Others think the government should just tell regular banks to give more loans for green projects instead of making a new bank.
The idea is to make sure there's enough money for clean energy so we can use less dirty energy and help the environment.
Renewable energy companies and PHDCCI propose a Green Bank to fund green projects.
The bank would raise funds through green bonds and long-term dollar borrowing.
Loans should have long tenures (up to 45 years) and sub 8% interest rates.
Supporters argue a dedicated bank would help smaller players and address funding gaps.
Opponents suggest existing banks should be allowed to raise green bonds instead.
- Who
- Renewable energy companies and industry body PHDCCI
- What
- Proposal for a dedicated Green Bank to fund renewable projects
- Where
- India
- When
- Upcoming budget
- Why
- To catalyze private capital into green technologies and address funding gaps
Key facts
- Proposed Institution
- Green Bank
- Purpose
- Fund renewable energy projects
- Funding Sources
- Green bonds, pooled financing, long-term dollar borrowing
- Loan Tenure
- Up to 45 years
- Lending Rate
- Sub 8%
- Existing Model
- NaBFID (National Bank for Financing Infrastructure and Development)
- Supporting Body
- PHDCCI (industry body)
- Key Supporters
- Tata Group, Waree Energies, British International Investment, Emmvee Photovoltaic Power
Quotes
Senior Executive at Tata Group
A senior executive at Tata Group, a multinational conglomerate.
“The bank should be allowed to go for long term dollar borrowing and do long term funding for projects.”
financialexpress.com
“Big players do not have an issue but smaller player find it difficult to raise long term funds.”
financialexpress.com
Sandeep Agarwal
Managing director at Greenzo Energy.
“All banks should keep certain percentage of their loans for renewable projects.”
financialexpress.com
“A green bank can’t not set up multiple branches across the country.”
financialexpress.com
Shilpa Kumar
Managing Director and Head of India, British International Investment.
“They should not replicate or crowd out existing pools of capital. Instead, they should focus sharply on addressing funding gaps and mitigating the perceived risks that continue to hold back incumbent lenders.”
financialexpress.com
“Most importantly, such institutions could build a repository of risk learnings and disseminate these insights more widely, helping to bridge perceived risk gaps and expand access to capital markets.”
financialexpress.com
Chief Financial Officer at a Global Renewable Energy Company
A chief financial officer at a global renewable energy company.
“They should enjoy tax advantage like NaBFID so that they can lend at lower rates.”
financialexpress.com
“They should be allowed to raise money through bonds.”
financialexpress.com
Abhishek Pareek
Head of group finance at Waree Energies, a solar products company.
“If Government can set up something like NaBFID, nothing like it”
financialexpress.com
DV Manjunatha
Chairman and managing Director at Emmvee Photovoltaic Power.
“Considering that our power demand is growing fast, huge growth in data centres and Net Zero goals we need a separate green bank.”
financialexpress.com
