Green bank can be formed to promote clean energy, Parliament’s committee on energy suggested

According to the committee, an annual investment of Rs 1.5-2 lakh crore would be required in the renewable energy sector in the country as against only Rs 75,000 crore in the last few years.

Green bank suggestion for green energy

A committee of Parliament has asked the government for the renewable energy sector (renewable energy sector) has been asked to explore new and some different measures to overcome the financial constraints. In these measures, green banks (green bank) constitution and obligations regarding renewable finance for financial institutions etc. According to the committee, to promote clean energy, it is necessary for companies to have easy access to money. For this, the government should work on such new ideas and take special steps so that this sector can be financed easily and according to the need.finance) So to receive .

What is special in the report of the committee

Parliament’s Standing Committee on Energy in its report tabled in Parliament on Thursday said, “As green banks have emerged as a unique way to finance clean energy globally, the government should consider setting up such a system.” should do. This can address the financing challenges in the renewable energy sector in the country. Keeping this in mind, the committee has suggested that the Ministry of New and Renewable Energy may explore the possibility of financing obligation on clean energy for banks and financial institutions like Renewable Energy Purchase Obligation (RPO). According to a committee’s suggestion, financing obligations for renewable energy will require financial institutions to invest a part of their investments in the clean energy sector.

Need for investment will increase in the sector

The committee also suggested that the Ministry should explore new and alternative sources of funding for the clean energy sector like Infrastructure Development Fund (IDF), Infrastructure Investment Trust (InvIT), Alternative Investment Fund, Green/Masala Bonds etc. For this you should work actively. According to the report, an additional investment of about Rs 17 lakh crore is envisaged under long-term commitments in the country. This includes the cost of the associated transmission. The renewable energy sector in the country would require an investment of Rs 1.5-2 lakh crore annually as against only Rs 75,000 crore in the last few years. The committee said that filling the funding gap would be a big task for which the government needs to put in place an efficient framework. The report also suggested that IREDA (Renewable Energy Development Agency of India) should be sought from the Reserve Bank like specialized financial institutions like National Housing Bank (NHB), SIDBI (Small Industries Development Bank) and NABARD (National Agricultural Rural Development Bank). Special arrangements should be made for taking loans at repo rate. This will ensure cheaper credit for the renewable energy sector.

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