Dare and lend to solar power projects, Abdullah tells bankers
PTI | 09:08 PM,Aug 25,2010Mumbai, Aug 25 (PTI) Union Minister for New and Renewable Energy, Farooq Abdullah, today asked bankers to `dare' and take the risk of lending to solar power projects, while assuring Government support for a successful solar story in the energy-starved country. "Bankers are frightened and feel their money is not safe when lent to solar projects. But unless you take the risk and dare to venture into an emerging business, you will not get the returns," he said, addressing a CII seminar here which was attended by leading bankers. Abdullah said that his Ministry is eager to facilitate and take all measures required to allay the bankers' fears including that of long gestation periods involved in such projects. The Government's recent move of giving subsidy, both on capital and interest, for those setting up a solar power project is a step in that direction, he said. "Banks should come forward for lending funds to such projects...you should not be worried, the Government of India is behind you," he said, addressing an audience comprising of bankers and senior executives from development agencies. Abdullah also said that developers taking up solar power projects should give importance to R&D for solar technology and should not restrict themselves to merely using what has been developed in the West. "Instead of depending on imported technology, if the manufacturers set up their own R&D units, it would act as a guarantee for banks (to lend to the projects)," he said. PTI PSK AA JJ AT
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