2020-03-06 / HFE Team
Crisis at Yes Bank limits green financing avenues
There seems to be a ‘perfect storm’ brewing in India’s clean energy space.
Already spooked by the spectre of Covid-19 impacting project commissioning schedules and the government’s move to raise import tariffs on equipment, developers now say the situation may be exacerbated by the Reserve Bank of India’s moratorium on capital-starved Yes Bank.
“Yes Bank was one of the front runners in funding green energy projects. With NBFCs (non-banking financial companies) also in trouble after the IL&FS crisis we could see a challenge in funding new projects. A pipeline of 30,000 MW would require close to INR 1 trillion funding. The government has to do some innovative financing structures for renewable," said Sunil Jain, chief executive officer, Hero Future Energies Pvt. Ltd.
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