India Seeks to Separate Lenders to Ease Clean Energy Funding
- Government in talks to ask Power Grid to buy PFC stake in REC
- Move will help lenders to sidestep limits on project lending
India is looking to add a record capacity of clean energy to reduce its dependence on fossil fuels.
Photographer: Dhiraj Singh/BloombergThis article is for subscribers only.
India may unwind a four-year-old decision to combine two state-run lenders as it seeks to sidestep local rules that restrict them from funding power projects in one of the world’s fastest-growing energy markets.
The government is discussing a plan for state-run Power Finance Corp. to sell its controlling stake in REC Ltd. to transmission utility Power Grid Corp., which is flush with cash, Raj Kumar Singh, the nation’s power minister, said in an interview in New Delhi. Power Finance and REC will enjoy their different exposure limits as separate companies, potentially resulting in greater project funding, he said.