Global lenders should earmark 15% funds for renewables
Global financial bodies like World Bank should give a clear roadmap on funding to renewable energy for next five years and provide 15 per cent of their total funding for clean energy, said a senior official.”The international bodies must give a roadmap i.e. they must tell how much money they will give during next five years.”Today, the World Bank gives five per cent of its money for renewable energy. We need at least 15 per cent and a roadmap from these bodies because they are the central controller of funds globally,” said Renewable Energy Secretary Upendra Tripathy while addressing Assochams Solar India Summit 2016.
He said the government was roping in multilateral and bilateral agencies and banks to find new ways to reduce the cost of capital.”We are thinking whether we can have a USD 1,000 million equity fund to help new companies to come up for solar (energy) to become a movement and to make a transit from megawatt to gigawatt,” he said.”The other day, I had talked to Kamat from New Development Bank and he said yes we are taking it to the board that at least 15 per cent will come to the renewable energy and he said that ours must be much more,” said Tripathy.This will provide a clear roadmap to the industry, so it is known that this much of money will come into the sector and it will help bring down costs further, he said.
“We have some USD 1,000 trillion in equity, pension and insurance funds, could we have a commitment from them that at least 10-15 per cent funds will come to renewable energy sector which is a common obligation where global finance plays a very important role,” he added.He also said there must be a global mechanism to bring down hedging costs, not completely but at least partially.The secretary informed that his ministry had been negotiating with many banks to take loans including State Bank of India (SBI), Punjab National Bank, Canara Bank and others.”To SBI we have told, why don?t you take USD 500 million from the World Bank, keep it in London and give the money in India so there is natural hedging and that money we are planning to the industry at lower rate of interest for rooftops,” he further said.
He said union government had for the first time given Rs 5,000 crore for raising bonds.”We have raised bonds and that money will also be made available to the industry.”Earlier in his address, Railway Board Member (electrical) A K Kapoor said Indian Railways was working to get international funding to harness renewable energy related potential for its operations.”For international funding, be it in wind, solar, LED lights and even waste to energy, we are in different process of discussions, we will be successful in harnessing that also,” said Kapoor.