A major barrier to deploying renewable energy in India is a shortage of debt at attractive terms. Domestic debt in India has high cost, short tenor, and variable interest rates, adding 30% to the cost of renewable energy. Currently foreign debt is as expensive as domestic debt because it requires market-based foreign exchange hedging solutions. This paper investigates a government-sponsored foreign exchange facility as an alternative way for facilitating provision of foreign debt at attractive terms.
Links:
[1] http://admin.indiaenvironmentportal.org.in/reports-documents/reaching-india%E2%80%99s-renewable-energy-targets-cost-effectively-foreign-exchange
[2] http://admin.indiaenvironmentportal.org.in/category/author/arsalan-ali-farooquee
[3] http://admin.indiaenvironmentportal.org.in/category/author/gireesh-shrimali
[4] http://admin.indiaenvironmentportal.org.in/category/publisher/climate-policy-initiative
[5] http://admin.indiaenvironmentportal.org.in/category/thesaurus/renewable-energy
[6] http://admin.indiaenvironmentportal.org.in/category/thesaurus/india
[7] http://admin.indiaenvironmentportal.org.in/category/thesaurus/debt
[8] http://admin.indiaenvironmentportal.org.in/category/thesaurus/finance
[9] http://admin.indiaenvironmentportal.org.in/category/thesaurus/solar-energy
[10] http://admin.indiaenvironmentportal.org.in/category/thesaurus/wind-energy
[11] http://admin.indiaenvironmentportal.org.in/category/thesaurus/fossil-fuels