| Work Detail |
State-run REC may disburse up to Rs 1.75 trillion loans for coal-fired power plants by 2032, as the country seeks to boost its thermal power generation by adding 80 GW capacity. The government has decided to add thermal power capacity along with its energy transition plans, as it is set to achieve the target of net zero emissions.
The company finances large thermal projects along with a partner, in consortium model and has the ability to complete the funding requirement of thermal capacity. Around 50,000-55,000 MW capacity is emanating from the state-sector, as thermal would continue for a few years. The NBFC may finance up to 25 GW capacity addition in the countrys thermal power push.
While pumped storage projects and hydro power projects will eventually stabilise the grid, commissioning may take time, and meanwhile the company needs to set up these capacities. In the last financial year, REC sanctioned loans worth Rs 3.59 trillion, out of which Rs 1.36 trillion were for RE projects. The company plans to increase the share of renewable energy in its loan book to 30 percent by 2030.
REC has started funding nascent sectors like green hydrogen and green ammonia projects which several other financial institutions are yet to finance amid concerns over returns. Indias coal-fired power generation capacity currently stands at 210 GW. Overall, thermal power which also includes gas, lignite and diesel, stands at 243 GW in capacity. |
