RBI to remove PSL Limit for Renewable Sector

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On PSL government is going to ask RBI to remove Priority Sector Limit for the renewable sector. For now, RBI uses to keep 40% of their lending limit reserve for the renewable sector. But now the government has asked to remove that limit.

Ministry of new and renewable energy is going to hold talks with RBI on this issue. Under RBI all public and private sector bank works. Through RBI guideline Public sector banks keep a reserve for priority sector lending.

PSL Priority sector lending

Plan of government is to give a boost to India’s Green Economy. Their agenda is to provide sustainable affordable energy to the masses.

By this decision, the government is trying to provide more loans to the renewable sector. Till now finance has been the major concerns for the people related to this sector which this current government is trying to remove.

Narendra Modi government in his previous tenure has set the target of achieving producing 175GW energy by 2022 which includes 100 GW from solar, 60 GW from wind, 10 GW from bio-power and 5 GW from small hydro-power. And to achieve this target finance is required.

Also, the government is planning to provide energy on a low tariff which only renewable energy can provide. Considering all these factors the government is certainly going to take this step.

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