Renewable energy sector has potential to grow: PTC India

PTC India Financial Services has sanctioned loans worth Rs 1000 crore in its board meeting last week. The loan is sanctioned in the renewable growth sector, Ashok Haldia, Managing Director (MD) & Chief Executive Officer (CEO) of the company told CNBC-TV18. Haldia said the renewable energy sector – wind and solar –  is most efficient and will grow further. Of the total loan book, 45 percent plus loans has been sanctioned on 50 renewable energy projects, he said adding that implementation period and recovery of dues is easier in the sector.The company has sanctioned nearly Rs 3,000 crore loans this year. PTC is trying to reduce its cost of borrowing by looking for right international investors, Haldia said. The company’s current cost of borrowing stands at 9.3 percent. Below is the transcript of Ashok Haldia’s interview with Anuj Singhal and Ekta Batra on CNBC-TV18.

Anuj: What kind of loan growth can we expect going forward?

A: We have sanctioned in the last board meeting held two weeks ago, Rs 1,000 crore for the renewable power projects and we had been growing, our sanctions have been growing within the range of 40-50 percent every year. We see a huge potential in the power sector particularly in the renewable segments both in terms of the solar and also the wind. Off late, there has been demand also in the energy efficiencies and the decentralised generation market. So, we feel good prospects for the sanctions and the disbursements to take place in the times to come.

Ekta: Renewable energy has been quite a strong part of your portfolio. Can you tell us how much of your total loan portfolio is now renewable energy? What kind of projects are you sanctioning loans to and how much do you expect it to grow?

A: We have about 45 percent or more of our total loan book into the renewables and this comprises of largely the solar and the wind power projects. In all around 50 projects for the renewable sector, our track record and our experience in financing solar projects as well as the wind energy project has been quite satisfactory both in terms of the implementation period, in terms of the difficulties that the developer have faced in putting up those projects and also recovery of our dues, we do not have any delays or delinquency as such in the renewable sector. As you are aware, we have sanctioned something around Rs 3,000 crore this year up till now and largely that goes into the renewable sector.