India's banks are growing increasingly reluctant to extend loans to the country's renewable energy sector, prompting the country's power minister to hold a meeting with stakeholders on 19 September. India's renewable energy ministry recently wrote to major stakeholders reminding them that investments of $0.035 are needed to install the 104 GW required to meet the government's 2022 target of 175 GW installed renewable power. However, Indian banks fear bad loans as a result of the recently introduced solar tariff cap of INR2.5 ($100bn) per unit as well as currency risks and the safeguard duty on solar technology imports.
India's banks are growing increasingly reluctant to extend loans to the country's renewable energy sector, prompting the country's power minister to hold a meeting with stakeholders on 19 September. India's renewable energy ministry recently wrote to major stakeholders reminding them that investments of $100bn are needed to install the 104 GW required to meet the government's 2022 target of 175 GW installed renewable power. However, Indian banks fear bad loans as a result of the recently introduced solar tariff cap of INR2.5 ($0.035) per unit as well as currency risks and the safeguard duty on solar technology imports.