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Optimistic Scenario for Renewable: Shifting Lenders Preference

News:

With the Indian government focussing on reviving infrastructure projects to jump-start a slowing economy, the sector’s growth will be driven by an increase in electricity generation from solar and wind, improvement in power transmission line, says G. Krishnamurthy, chief executive of L&T Infrastructure Co. Ltd.
Source: Financial Express

SNP Insight:

L&T Infra Finance focussing more toward solar and power transmission for project financing than any other sector may help in achieving target of 100 GW by 2022 with efficient evacuation facility. However, lending to only set of people for mitigating risk and competing with the foreign investors at less insterest rate is quite questionable. Also, this scenario might  shoot up the lending rate for other infrastructure projects and might down the economy in the long run.
Source: SNP Infra Research