Renewable Energy India

NSEFI and IEX present joint workshop on green power markets for renewable generators.

NSEFI and IEX present joint workshop on green power markets for renewable generators. Entry only on invitation. Please send in your interest to admin@nsef.in with name, organization, designation if you are interested in participating

adminNSEFI and IEX present joint workshop on green power markets for renewable generators.
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RBI’s New Policy on ECBs Could Leave Renewable Energy Projects Stranded

The new framework makes the repayment of rupee loan to domestic lenders by renewable project developers through ECB proceeds impossible

The National Solar Energy Federation of India (NSEFI) has written a letter to the Prime Minister’s Office (PMO) regarding the new External Commercial Borrowings (ECB) policy framework implemented by the Reserve Bank of India (RBI), which is against the best interests of the domestic renewable industry according to the Federation.

The federation has argued that renewable energy generation projects require huge amounts of capital and long-term financing for 20-25 years. However, there is a lack of availability of domestic debt funds for renewable power projects. Foreign lenders are also hesitant to take risks before commercial operation, citing issues with land acquisition and laying of the transmission system.

Therefore, renewable power developers first take pre-construction and under-construction loans from domestic lenders at relatively higher interest rates and later refinance such high-cost rupee loans by low-cost foreign currency loans from foreign lenders through External Commercial Borrowings once the project is operational. Such a method is an accepted alternate funding practice for the renewable energy projects.

The RBI has allowed the external borrowing in the form of security bond/loan in U.S. dollar to replace the Indian rupees loan having a tenure of 10 years or more given by the domestic banks and financing institutions.

However, as per the notification issued by the RBI on January 16, 2019, in order to rationalize the framework for ECB and rupee denominated bonds to improve the ease of doing business – Tracks I and II have been merged as ‘Foreign Currency denominated ECB’ and Track III and rupee denominated bonds framework are combined as ‘Rupee Denominated ECB’.

In the revised Foreign Currency ECB framework, the existing end-use of repayment or refinancing of the rupee loan taken under Track-II of ECB has not been considered. This makes the repayment of rupee loan to domestic lenders by solar or wind project developers through ECB proceeds impossible.

NSEFI, in the letter, has requested the PMO to intervene in the matter and give the required directions to the RBI in this matter.

“RBI should carve out a special category such as earlier Track-II with ECB with a minimum average maturity period of 5 years and above within the new merged foreign currency ECB category and permit renewable project developers for repayment of their rupee loans to domestic lenders from ECB proceeds.”

It has also requested to rationalize the new ECB framework suitably excluding repayment of rupee loans from the negative list.

Recently, NSEFI also issued recommendations to help attain India’s solar targets.

Source : Mercomindia

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New sop on power connection for new industries : UP Govt

Ahead of the second ground breaking ceremony for the launch of the projects worth Rs 1 lakh crore, Uttar Pradesh government in a major relief to the investors has directed that the new industries will be given power connection under open access regime under the provisions of the Indian Electricity Act 2003.

The open access regime empowers the industry to choose the power supplier and they will no longer at the mercy of the UP Power Corporation Limited, the monopoly power utility in the state. The MoUs for the second breaking ceremony was signed during the UP investor’s summit held here in February and the first ground breaking ceremony was held here in July.

UP government has also issued the warning to the different government agencies and department of stern action in case of laxity granting required approvals and providing the infrastructure facilities to the investors. The directives were issued by the industries minister Satish Mahana who on Friday presided over a meeting to review the preparation for the second ground breaking ceremony proposed to be held in December. As many as 150 new industrial projects are expected to be launched in December during the ceremony. Representatives of over 50 companies participated in the meeting.

The minister Satish Mahana said here on Friday that the government has decided to implement the open access regime for the new industries so as to ensure uninterrupted quality power supply to the new units. He said the UP power transmission corporation has also been directed to furnish the information regarding its installed power transmission capacity for the transmission of power generated by the solar power plants.

The Board of cricket control of India (BCCI) it will soon start the process of construction of international cricket stadium in NCR region of Ghaziabad and the land has been made available by the state government. The Singapore electric vehicles will set up a plant in UP for the manufacture of battery powered electric vehicles in the state. The Essel group informed the meeting that the group will soon start operation of 500 electric buses in Ghaziabad.

Chief Secretary and the Industrial development commission Anup Chandra Pandey said the meeting here on Friday was organized for the one to one dialogue with the investors ahead of the second ground breaking ceremony for the redressal of their problems. He said the investors invited for the meeting are those who are to launch their projects during the second ground breaking ceremony. He said all the government departments have been asked to extend the benefit to the investors as per the policies for the different sectors announced by the state government. The different sectors represented in the Friday meeting were from cement, food processing, garments and textiles, information technology, electronics, construction, renewable energy, dairy and electric vehicles.

Source: UNI
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