PTC India Financial Services and International Finance Corporation (IFC) collaborate to boost financing for renewable energy projects. Speaking to CNBC-TV18, RM Malla, MD and CEO, PTC India Financial Services said the collaboration is to boost financing for renewable energy projects in India and about 60 percent of sanctions will be for the same segment. Around 40 percent of total outstanding loan book of the company is attributed to renewable energy projects.Below is verbatim transcript of the interview:Q: Can you then take us trough what this collaboration comprises of with IFC?
A: IFC is a private arm of World Bank and works in more than 100 countries. It is a matter of great satisfaction and prestige for us that they have chosen our company, PTC India Financial Services as the first company in India to jointly syndicate and assist renewable energy projects in India.
Now, this is absolutely great for both IFC as well as PTC India Financial Services that we will collaborate jointly to fund infrastructure projects coming up in renewable energy space. This is one area where India has set for itself very ambitious target of one lakh megawatt in solar and another 50 thousand in wind.
This collaboration will really help the prospective borrowers so they do not have to go anywhere else, they can come to us and we will syndicate along with IFC their entire debt requirement.
The other collateral advantage will be that we will have access to best international practices in funding such projects. So, this will shorten the period of assessment, risk mitigation, the projects can be funded quickly and they can come up quickly and will have backing of one of the largest private sector, World Bank arm.
Q: How much do you envisage your renewable energy portfolio growing in FY16 from current levels?
A: Currently, of our total book, total commitment of close to USD 2 billion, 40 percent outstanding is for renewable and the type of proposals and the pipeline we have in this financial year, our sanctions about 60 percent will be to renewable energy.
Going forward, as far as the outstanding book is concerned, it will be about 50 percent of our total book. And because the size of projects in renewable so far in India is small; anything between five megawatt to 15 megawatt. But the collaboration with IFC we can even do 200 megawatt where the project cost will be about Rs 1,200 crore.
If 70 percent is the loan, about Rs 800 crore loan, I see PTC Financial Services and maybe one more, we put together, we can fund the entire project.
Another interesting thing which is happened that changes in priority sector, where loans up to Rs 15 crore are being treated as priority sector will be another boost for this sector so that we lend the money and then we can down sell these loans to various banks, qualified for the priority sector.
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