Mumbai: The ministry of new and renewable energy (MNRE) has approved the sale of tax free-bonds worth Rs.5,000 crore to support the government’s solar mission.
Of this, the Indian Renewable Energy Development Agency (IREDA) is likely to raise Rs.2,000 crore through an issue of tax-free bonds in the next few months.
The announcement was made by Tarun Kapoor, MNRE joint secretary, in a speech at the Solar Power Summit-2015 in New Delhi on Friday.
IREDA is expected to use these funds to lend to solar energy developers at a lower interest rate of 10.5%. Developers, in turn, will use these loans to fund roof-top solar panel installations.
Kapoor also announced a withdrawal of subsidies extended on targets of non-conventional power generation for industrial and commercial purposes.
State-run NTPC Ltd is also soon expected to issue tenders for solar power projects of 15,000 megawatts, the PHD Chamber of Commerce said in a statement on Friday.
However, Kapoor acknowledged that public sector companies are not likely to add non-conventional power capacities in a big way. “The government would want the private sector to play a major role to lighten the India through solar power initiatives,” he said.