Circulars/Notifications / Infrastructure, Housing & SME Finance Department  

 IH&SMEFD Circular Letter No. 11 of 2012
July 30, 2012 

The Presidents/ CEOs,
All Banks/DFIs

Dear Sirs / Madams,

Scheme for Financing Power Plants Using Renewable Energy-
Enhancement in Financing Limit

Please refer to SMEFD Circular No. 19 dated December 01, 2009 read with IH&SMEFD Circular Letter Nos.01 & 06 dated January 18, 2012 & June 6, 2012 respectively on the captioned subject.

2.         In order to promote Power Plants using Renewable Energy and feedback of Alternative Energy Development Board in this regard, the following modifications are made in the captioned Scheme:

(i) Enhancement in Scope of the Scheme: The capacity limit of all Renewable Power Projects is increased from 10 MW to 20MW for Financing under captioned Scheme. Therefore, banks /DFIs can consider financing requests of the sponsors, who intend to set up Power Projects up-to a maximum capacity of 20 MW, using all types of renewable energy sources eligible under the Scheme.

(ii) Maximum Borrowing Limit: To accommodate larger number of borrowers, it is decided that maximum financing limit to a single Renewable Power Project under the captioned Scheme shall not exceed Rs 3 billion.

However, banks/DFIs may continue to provide financing facilities as per their credit policies over and above the said maximum limit from their own sources subject to adherence to the Prudential Regulations.

3.         Other instructions on the Scheme shall remain unchanged.

Yours faithfully,


(Syed Samar Hasnain)

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