Karnataka borrowed ₹8,300 crore for ethanol and other renewable energy projects

By March 2024, Karnataka had borrowed approximately ₹8,300 crore from the Indian Renewable Energy Development Agency (IREDA), a public entity that extends financial support to renewable energy ventures. These borrowings primarily finance solar, wind, hydro, and ethanol projects in the state, reported The Hindu.

“As of March, Karnataka constitutes 13.93% of our loan portfolio. The projects we have funded here are performing satisfactorily. Typically, economic conditions in state sectors, particularly distribution companies’ (discoms), tend to be challenging. However, in Karnataka, discoms, notably Bangalore Electricity Supply Company (Bescom), have adeptly embraced renewable energy and are performing commendably. Payment mechanisms are also robust,” stated Pradip Kumar Das, Chairman and Managing Director of IREDA, in an interview with The Hindu on Friday.

IREDA, with a total loan portfolio of ₹60,000 crore, disclosed that 25% of the projects it finances are solar, with an increasing demand for green hydrogen and green ammonia. “In the foreseeable future, we anticipate a rise in projects related to pump storage and battery storage,” added Mr. Das.


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