Power Finance Corp., India’s largest state lender to electricity utilities, cut lending rates for renewable energy power plants by 50 basis points, Chairman Satnam Singh said.
The new rates will be effective Feb. 1, he said in a telephone interview from New Delhi. The company has cut interest rates for all power projects by 25 basis points, Singh said.
“We’ve lowered our rates across the board but rates for alternative energy plants are lower still,” Singh said.
India, which uses coal to fire more than half of its 211 gigawatt electricity output, plans to spend $300 billion on adding power capacity in the next five years to counter rising fuel prices and climate change.
Power Finance has approved 23.13 billion rupees ($430 million) for 611 megawatts of renewable capacity in the year ending March, the company said in an e-mailed reply to questions. The New Delhi-based company has lent a total 53.73 billion rupees to wind, solar and hydro projects.