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Innovation:
As Axis Bank has become the 5th Indian Bank to launch Green Bonds, in search of low cost & long term
capital, same may be pursued by other banks too.
General:
i. After Energy Sector, Manufacturing is the next big polluter the sector needs to be adequately
targeted.
ii. RRBs horizon of investment into Renewable should diversify from existing SHLS.
iii. The biggest impediment for investing in India’s RE project is its high interest rate, same needs to be
reworked & softened after due diligence so as to align with Global standards.
iv. Aggressive bidding in solar projects needs to be weeded out, otherwise in long-term the sector could
be jeopardised.
v. In context of Basel III kicking in from 2019, for long term capital investment, Banks can pool the
loans extended in different RE projects, trench them and sell them down to various groups of
investors so as to improve their Balance Sheets.
Sectors to be targeted:
a. Solar & Wind Energy Generation Projects ( as per International Solar Alliance & India’s ambitious
RE target)
b. Smart Cities: Prime Minister Modi has launched an initiative to create 100 “smart cities” with better
transport systems, utilities, and energy networks to address the challenges of urban growth. India’s
National Mission on Sustainable Habitat also includes initiatives such as the Energy Conservation
Building Code, mandated for commercial buildings in eight states, and actions to support recycling,
waste management, and improved urban planning.
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