Centre for Science and Environment (CSE) estimates that the new environmental norms applicable to the coal-based power sector may require almost Rs 72,000 crore of investment by existing plants. While the estimated tariff increase is not material, raising this amount of funding from commercial banks would be challenging. Our model recommends that around Rs 47,000 crore, half of the anticipated coal cess over the next three years, be used to support the sector’s investment needs. We believe the support should not be in the form of a subsidy but provided through 10–15-year-tenure loans at prime interest rates (currently around 9.5 per cent). Notably, the annual returns to NCEF from these loans would be around Rs 6,200 crore, which could be deployed to support renewable and clean environment projects.
Technology Partners: MimirTech
Links:
[1] http://admin.indiaenvironmentportal.org.in/reports-documents/using-national-clean-energy-fund-clean-coal-power-plants
[2] http://admin.indiaenvironmentportal.org.in/category/author/priyavrat-bhati
[3] http://admin.indiaenvironmentportal.org.in/category/author/soundaram-ramanathan
[4] http://admin.indiaenvironmentportal.org.in/category/publisher/centre-science-and-environment-cse
[5] http://admin.indiaenvironmentportal.org.in/category/thesaurus/coal
[6] http://admin.indiaenvironmentportal.org.in/category/thesaurus/thermal-power-plants
[7] http://admin.indiaenvironmentportal.org.in/category/thesaurus/power-industry
[8] http://admin.indiaenvironmentportal.org.in/category/thesaurus/india
[9] http://admin.indiaenvironmentportal.org.in/category/thesaurus/centre-science-and-environment-cse
[10] http://admin.indiaenvironmentportal.org.in/category/thesaurus/pollution-control
[11] http://admin.indiaenvironmentportal.org.in/category/thesaurus/finance
[12] http://admin.indiaenvironmentportal.org.in/category/thesaurus/energy-technology
