Power minister Piyush Goyal on Tuesday launched the Indian Renewable Energy Development Agency (IREDA)’s loan scheme for rooftop solar power projects in the country. The scheme will provide loans at interest rates between 9.9% and 10.7% with a repayment period of nine years.
“The loan can be availed by project aggregators, developers for a minimum aggregated project size of 1MW (megawatt) and sub size of 20KW (kilowatts),” said Tarun Kapoor, joint secretary, ministry of new and renewable energy. The scheme has been formed by drawing credit lines from German development bank KfW and Japan International Cooperation Agency. “They will be tax-free bonds, which IREDA will float shortly,” Kapoor added.
The government is also looking at making amendments to the Electricity Act, 2003, for strong enforcement of the Renewable Purchase Obligation (RPO) and for providing Renewable Generation Obligation (RGO). In addition, stringent penalties for violations are being proposed. “I am told that the tariff policy and amendment in the act is more or less ready and it will soon go to the cabinet,” said cabinet secretary Pradeep Kumar Sinha.