‘Karnataka has borrowed ₹8,300 crore for renewable energy projects‘ 

As of March 2024, Karnataka borrowed around ₹8,300 crore from the Indian Renewable Energy Development Agency (IREDA), a public service company which provides financial assistance to renewable energy products. The State’s borrowings are mainly for solar, wind, hydro energy, and ethanol projects.

As of March 2024, Karnataka borrowed around ₹8,300 crore from the Indian Renewable Energy Development Agency (IREDA), a public service company which provides financial assistance to renewable energy products. The State’s borrowings are mainly for solar, wind, hydro energy, and ethanol projects.

“As of March, Karnataka makes up for 13.93% of our loan portfolio. The projects we have financed here are also doing well. Normally, in state sectors, distribution companies’ (discoms) economic conditions are relatively bad. In Karnataka, discoms, especially Bangalore Electricity Supply Company (Bescom), have adjusted well to renewable energy and are doing fairly well. The payment systems are also good,” Pradip Kumar Das, Chairman and Managing Directorz, IREDA told The Hindu on Friday.

IREDA, which has a total loan portfolio of ₹60,000 crore, said that 25% of the projects they fund are solar, with a growing demand for green hydrogen and green ammonia. “In the upcoming days, we are expecting more projects for pump storage and battery storage,” said Mr. Das. 

Central government officials also said that Karnataka has been a pioneer in the renewable energy sector, while participating in a national workshop on the PM-KUSUM scheme on the theme ‘Accelerating Transformative Energy Security for Indian Agriculture’, organised by Karnataka Renewable Energy Devlopment Limited (KREDL) and IREDA. 

Speaking on the sidelines of the event, Dinesh Jagdale, Joint Secretary, Ministry of New and Renewable Energy (MNRE), said: “Karnataka is top when it comes to the penetration of renewable energy; not with their installed capacity yet, but with the amount they have said they need for adoption. The State has evolved when it comes to wind and hydropower, while also hosting one of the biggest solar parks in Pavagada.” 

The workshop was attended by Energy Department of officials of various States, including Karnataka, Tamil Nadu, Maharashtra, Arunachal Pradesh, and others.

Gaurav Gupta, Additional Chief Secretary, Energy Department, said that KREDL had been successful in enrolling 18,000 farmers for KUSUM-B schemes so far.