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Financial Institutions reluctance to fund renewable projects forces ministry to classify projects under priority sector lending

<p>Developers have expressed their concern that they experience difficulty in arranging lenders/financers of the renewable projects, Banks and lenders are reluctant to fund power projects due to the Power sector assets becoming NPA and other reasons like falling solar tariffs, power evacuation issues among reasons behind the wavering interest of lenders in the clean energy sector.&nbsp;</p> <p>MNRE has requested RBI to classify renewable projects under priority sector lending without any limit. Solar rooftop projects are under priority sector lending category, but the quantum of funding is restricted to Rs 15 crores. Such classification may bring a hope to developers and improve returns of lenders.</p>