Solar is going to take lead among renewable but wind space growing as well: Ashok Haldia, PTC Financial Services
In a chat with ET Now, Ashok Haldia, MD and CEO, PTC Financial ServicesBSE -1.29 %, says we have been seeing about 30-50% growth in the last five years in the PFS operations and the pipeline that we have. Edited excerpts
ET Now: You are one of the main players in the niche renewable sector. Tell us about the opportunities you see within the renewable energy project financing space?
Ashok Haldia: In the renewable space, we have been seeing upbeat and growth momentum in terms of the new projects coming up, new bids and various state governments being invited and the new class of promoters — both domestic and the international — showing interest in the solar and the wind projects. So there has been growth in the financing requirements in the renewable space and we have been seeing increase in loan applications for the solar as well as the wind power projects. On an average we have been seeing growth about 30-50% in the last five years in the PFS operations and the pipeline that we have.
As I have been maintaining at all times, considering the potential that exists in the renewables and wind energy, and also the fact that we have diversified the training to the areas of the annuity based roads and also the existing ports, transmissions, energy efficiency. We see that the growth momentum in the PFS should continue at the rate that we have been in the past. Another area that is going to take new headwinds is the rooftop. With the government focus on the rooftop we have been seeing that the number of players emerging for taking up the rooftop at the developer scale and in the developer model so that is also the opportunity that we are seeing in the market.
ET Now: Within this renewables financing space where do you see maximum demand and what are the factors influencing this?
Ashok Haldia: We see the maximum demand in the renewables and in the renewables while the solar seems to be taking the lead and that is natural because the number of the states that have come out with their policy, the incentives that they have given and also the policy and the other initiatives taken at the Government of India level, including with organisations like NTPCBSE . So, I believe that the solar is going to take the lead but the growth momentum continues in the wind space as well.
ET Now: Just tell us your outlook on loan growth for FY17. Do you see product mix changing and if you, how?
Ashok Haldia : Yes first let me tell you that last time when you interviewed couple of months ago, I told that in terms of our assets, standard assets which have been restructured and also the NPA, they are in the range of Rs 800 crore to Rs 1000 crore. That figure is getting stabilised that is one thing. Second thing, all these accounts we are constantly in engagement with the promoters, the projects and also wherever we are not the lead institutions with the lead bankers and they have been showing a positive results.
Let me tell you, the stressed assets in generally are in the churning out process. New investors are showing interest. The existing promoters are showing interest to revive those projects and we have been recently classified as a financial institution under Sarfaesi and that was only about a month ago and we have already initiated actions in two of the cases and we are expecting productive results in the next couple of months.
Certainly, we are constantly engaged with the projects and the promoters and in some cases we are expecting the queries as well maybe this quarter, maybe the next quarter or maybe by the end of the year.