Centre Looks At Leveraging Iifcl Credit Line For Green Energy

New Delhi: The central government is hoping to use part of a 5 billion (Rs.31,075 crore) line of credit to promote renewable energy projects, a move which could help bring down borrowing costs for solar and wind power companies. The credit facility was extended by the Reserve Bank of India (RBI) to state-owned India Infrastructure Finance Co. Ltd (IIFCL) from its foreign exchange reserves. The Union ministry of new and renewable energy (MNRE), which hopes to leverage the credit facility, has already communicated its desire to various arms of the government and talks are being held for the same. India requires around Rs.10 trillion of green energy investments, and the industry has been demanding cheaper loans to set up these projects. "The credit line was extended by RBI to IIFCL for 5 billion. This line has not been used fully. We want to use this facility for lending to renewable projects such as solar as the interest rate will come down. This, in turn, will attract developers to apply for loans. The talks are on," said a top government official, requesting anonymity as the plan is in its initial stages. Read more at: http://www.livemint.com/Politics/bE0OUZmG0h1QEz9XNp2Y6I/Centre-looks-at-leveraging-IIFCL-credit-line-for-green-energ.html?utm source=copy