Informist NEW delhi

Public sector banks will loan INR 10 trillion to the renewable energy sector in the next five years, shouldering the growing sector's huge funding requirements, to the tune of INR 33 trillion, Department of Financial Services Secretary M. Nagaraju said Wednesday. 

While the banking sector intends to loan more, regulatory obligations put a ceiling to their lending to the sector, Nagaraju said at the FICCI's 3rd India Energy Transition Summit. "...and that is why the private sector should come forward and lend more," he said. 

Beyond bank lending, debt financing is a key mechanism to infuse money into the renewable energy sector, the financial services secretary added. However, India's "under-developed" bond market causes a hindrance. "If the bond market gets developed, long-term financing in the renewable energy sector will get operational," he said.