Indian Government Reviews Low‑Cost Loan Plan to Support Curtailed Renewable Projects

Indian government is reviewing a low‑cost loan programme designed to support renewable energy developers whose solar and wind farms have been hit by recent power‑curtailment directives, aiming to keep financing flowing despite reduced generation.

Project owners say the curbs have cut expected output by up to 30 percent, squeezing cash‑flow and forcing many to seek cheaper credit that matches the lower revenue while avoiding project delays or cancellations.

Finance ministry sources indicate the proposed loans would carry interest rates below prevailing market levels, be disbursed through state‑run development banks, and include flexible repayment schedules tied to actual power generation.

Energy analysts warn that without such affordable financing, the slowdown caused by curtailments could jeopardise India’s goal of adding several hundred gigawatts of renewable capacity by 2030, threatening climate commitments and investment confidence.