We are going to have larger and greener projects and larger funding for them: KV Kamath

economictimes.indiatimes.com:

KV Kamath, Chairman, National Bank for Financing Infrastructure & Development (NaBFID), says “today, a large sector of green projects are economically viable and financially very sound. So, while green is the way to go, the distinction in funding using green or non-green funding, the basic difference is, the terms which could be slightly softer, is today becoming narrower. ”On green financingThere are two parts to it.

One is you need an opportunity which is green to fund and you need the funding to be put in place. The opportunity to fund, if you look at the history in a way of green financing, that caught on the table when people thought that anything that was sustainable or green was not economically viable and so you needed to put in funding which was cheaper, which would make the project viable and get these off the ground and that had its good effect and has now been understood by both bankers and by the users of funding. But today, a large sector of green projects are economically viable and financially very sound.

So, while green is the way to go, the distinction in funding using green or non-green funding, the basic difference is, the terms which could be slightly softer, is today becoming narrower. But 10 years back, it was distinct and I will put that in context. Ten years back, let us say, solar power in India was Rs 12-15 a unit.

It is today Rs 2.5 to Rs 3 a unit. So, at Rs 12-15 a unit, it needed green funding, meaning sustainable funding at lower costs. Today, it can be funded through normal funding but it is still green.