Anil Ambani led Reliance Capital arm will get a loan assistance of Rs 300 crore from government body IREDA to utilise funds for on-lending to renewable energy sector.
“Reliance Money (a brand of Reliance Commercial Finance Ltd or RCFL) signs Rs 300 crore agreement with Indian Renewable Energy Development Agency Ltd (IREDA),” Reliance Money said in a statement.
The company will use the funds for lending to its renewable energy and energy efficiency projects, it said in a statement.
“Our partnership with IREDA opens new opportunities for us to create solutions for renewable power sector,” said Devang Mody, Executive Director and CEO, Reliance Commercial Finance Limited (RCFL).
RCFL finances wind and solar energy projects besides providing assistance for developing infrastructure and projects in renewable energy space backed by government.
The Make in India campaign of the government under its initiative like ‘Prayas’ has aimed at creating 5 gigawatts (GW) of photo-voltaic manufacturing capacity from 2019 and build 20 GW of projects by 2026.
Government has targeted to raise its renewable energy capacity to 175 GW by 2022 from 45 GW at present.
“With the Prime Minister’s vision of promoting renewable energy we too understand the importance of what right financing will do to the sector. With the funding we are confident that RCFL will provide solutions and help fill any gaps in financing the renewable energy sector,” said K S Popli Chairman and Managing Director, IREDA.
RCFL is part of Reliance Capital that offer products like business expansion loans, vehicle loans, loans against property, infrastructure financing, agriculture loans and supply chain financing among others.