Over the past few years, India has made significant strides towards its goal of becoming a global leader in renewable energy. The country has set ambitious targets to increase its renewable energy capacity, and this has been made possible through the support of various public sector banks and financial institutions. In the last five financial years, approximately ₹7.16 lakh crore has been deployed in the renewable energy sector by public sector banks, IREDA, PFC, REC, SIDBI, IIFCL, and NaBFID. This is a testament to the government’s commitment towards clean energy and its determination to make India a sustainable and green economy.
The rapid growth of the renewable energy sector in India can be attributed to the government’s policies and initiatives such as the National Solar Mission, National Wind Mission, and National Bio-Energy Mission. These programs have provided a conducive environment for the development of renewable energy projects and have attracted significant investments from both domestic and international players. However, the financial support provided by public sector banks and financial institutions has been crucial in driving the growth of the sector.
Public sector banks have played a vital role in providing loans and financial assistance to renewable energy projects. They have been at the forefront of financing solar, wind, and biomass projects, which have seen a surge in demand in recent years. These banks have not only provided financial support but have also been actively involved in promoting renewable energy projects through various schemes and initiatives. This has helped in increasing the accessibility of funds for renewable energy projects and has encouraged more players to enter the sector.
The Indian Renewable Energy Development Agency (IREDA), a public sector undertaking, has been a major contributor to the growth of renewable energy in India. IREDA provides loans for renewable energy projects and has been instrumental in financing several large-scale solar and wind projects in the country. It has also been actively involved in promoting the use of new and innovative renewable energy technologies, which has helped in diversifying the country’s renewable energy mix.
Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) are two other public sector financial institutions that have been supporting the renewable energy sector. They provide financial assistance to renewable energy projects through various schemes and have also been involved in funding transmission and distribution infrastructure for renewable energy projects. Their efforts have been crucial in ensuring the smooth functioning of renewable energy projects and have helped in achieving the government’s target of 175 GW of installed renewable energy capacity by 2022.
Small Industries Development Bank of India (SIDBI) and India Infrastructure Finance Company Limited (IIFCL) are two other important players in the renewable energy sector. SIDBI provides financial assistance to small and medium enterprises involved in the manufacturing of renewable energy equipment, while IIFCL has been involved in financing infrastructure projects in the renewable energy sector. Both these institutions have played a significant role in promoting the use of renewable energy and have contributed to the growth of the sector.
The National Bank for Agriculture and Rural Development (NABARD) has also been a key contributor to the renewable energy sector. It provides financial assistance to rural areas for setting up small-scale renewable energy projects, thereby promoting sustainable development in these areas. NABARD has also been involved in funding off-grid renewable energy projects, which has helped in providing electricity to remote and inaccessible areas.
The deployment of ₹7.16 lakh crore in the renewable energy sector by public sector banks and financial institutions has not only helped in achieving the government’s targets but has also had a positive impact on the economy. It has created job opportunities, reduced the country’s dependence on fossil fuels, and has helped in mitigating the adverse effects of climate change. The investments made by these institutions have also contributed to the overall growth of the country’s economy, making it more sustainable and resilient.
In conclusion, the financial support provided by public sector banks and financial institutions has been crucial in the growth of the renewable energy sector in India. Their efforts have helped in increasing the country’s renewable energy capacity, promoting sustainable development, and creating a cleaner and greener environment. With the continued support and commitment of these institutions, India is well on its way to becoming a global leader in renewable energy.
