Banks reluctant to fund WtE projects

Following the Centre’s policy announcement to boost the use of bio-fuels earlier this year, funding difficulties for waste-to-energy projects reportedly continue. Banks have maintained a cautious and guarded approach over funding these power projects, especially in new sectors such as bio-fuels, as per a report in The Hindu Business Line.

Looking towards the reluctance from the banks, the private players have started exploring other funding avenues such as development finance institutes such Power Finance Corporation, besides overseas investors such as venture capitalists (VC Funds) and companies, who have already implemented similar projects in other countries.

In March, the Centre approved the national policy on bio-fuels, which was aimed at enabling appropriate financial and fiscal incentives to the sector. The whole motive was in order to meet the aspiring and the challenging target of employment generation and waste to wealth creation.