A clear picture is likely to emerge only towards the end of June

Wind, power project face hurdles in getting bank finance

With huge investments targets for renewable energy projects including solar and wind power, the government wants the public sector banks to consider separate limits to improve fund flow to this sector. Bank loans to power sector have shown consistent growth. But banks give preference for conventional power projects than renewable energy units.

RBI has allowed companies to raise up to $1 bn but hedging of costs could make this unattractive for borrowers

Though the Reserve Bank of India has allowed real estate developers and housing finance companies to raise up to $1 billion (Rs 5,400 crore) via external commercial borrowing (ECB), hedging of costs could make this unattractive for borrowers. "It looks very difficult to raise funds through this new window. Monitoring use of funds is going to be a challenge. Also, there is a question mark over preparation and ability for managing currency risks even through hedging," said S Srinivasaraghavan, head, treasury, Dhanlaxmi Bank.