April 29, 2015: In order to provide low cost finance to renewable energy projects, government announced its commitment in the budget for 2013-14 to provide funds from the National Clean Energy Fund (NCEF) to Indian Renewable Energy Development Agency (IREDA) to on-lend to viable renewable energy projects. Rs 1 billion and Rs. 2 billion were released to IREDA for this purpose from NCEF in the year 2013-14 and 2014-15 respectively. This was stated by Piyush Goyal, Minister of State (IC) for Power, Coal & New and Renewable Energy in a written reply to a question in the Lok Sabha.
The Minister further stated that as per the Scheme not more than 30 per cent of the outstanding loan amount shall be refinanced to banks/ financial institutions, wherein the end-users will get said amount at a maximum rate of interest of 5 per cent per annum renewable power projects of about 200MW are expected to be supported under the scheme, the Minister added.