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Presentation on IREDAs Role for
Commercialization of Solar Water Heating System
By B. Venkateswara Rao General Manager Email
b.v.rao_at_ireda.in Indian Renewable Energy
Development Agency Limited Date
20.11.2009 Venue Gurgaon
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• Presentation
• About IREDA
• Commercialization Role for Solar Water Heating
  System

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• About IREDA

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The Company
Public Sector Undertaking established in 1987 to
promote, develop and extend financial assistance
for Renewable Energy and Energy Efficiency /
Conservation projects with the motto ENERGY
FOREVER
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IREDAs Achievements

• Consistently Profit making and Dividend Paying
• Received international assistance of 18 Million
  Dutch Guilders from the Government of Netherlands
• Received first line of credit in Renewable Energy
  globally from the World Bank (US 195 Million)
  and from the Asian Development Bank (US 100
  Million)
• Received 15 Million USD from Danida and 5 million
  USD from the GEF
• KfW, Germany provided 120 Million DM Loan
• Received 2nd line of credit in Renewable Energy
  from the World Bank (US 130 Million)
• First DFI to get ISO 90012000 in India for
  total operations

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Sectors for Financing

• Wind Energy
• Small Hydro Energy
• Biomass Power
• Cogeneration
• Energy Efficiency Conservation
• Solar Energy
• Bio Fuels, Waste to Energy etc.
• New Emerging Technologies

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Financing Schemes

• Project Financing
• Equipment Financing
• Loan for Manufacturing
• Financial Intermediaries
• Business Development Associates
• Renewable Energy Umbrella Financing
• Energy Centres
• Financing of Commissioned Projects including
  takeover of loans and Banks/FIs
• Additional / Bridge Loan against SDF Loan

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Some Large Capacity Solar Water Heating Systems
financed by IREDA

• (Capacity in LPD)
• Godavari Fertilizers 1,20,000
• Hindoostan Spinning 1,00,000
• Balaji Foods Feeds 1,00,000
• Quinn India 75,000
• Western Hatcheries 50,000
• Rayalseema Technologies 56,000
• Gokul Dairy 70,000
• Park Sheraton Hotel 42,000

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• Commercialization Role for Solar Water Heating
  System

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Different Operating Route of Soft Loan for Solar
Water Heating System
MNRE provides upfront Interest Subsidy
IREDA as a Fund Manager for MNRE
Implementation through Public / Private
Sector Banks, Scheduled Co-operative Banks, RBI
approved NBFCs and other Public/ Private
Financial Institutions


Implementation through IREDA (Direct User
Intermediaries)
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Financing Guidelines for Solar Thermal Sector

• Direct Funding from IREDA to
• Direct Users
• Financial Intermediaries
• Manufacturing

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Financing Guidelines for Direct Users
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Financing Guidelines for Intermediaries
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Financing Guidelines for Manufacturing
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Godavari Fertilisers Chemicals Ltd. 1,20,000
LPD SWHS Project Secunderabad, Andhra Pradesh
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Adyar Gate Hotel Ltd. 42,000 LPD SWHS
Project Chennai, Tamil Nadu
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Financing Guidelines for Solar Thermal Sector
Interest Subsidy Scheme for Banks FIs
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Financing Guidelines under Interest Subsidy
Scheme for Banks / FIs
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Financing Guidelines under Interest Subsidy
Scheme for Banks / FIs
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Role of IREDA as Fund Manager MNRE Interest
Subsidy Scheme

• MOU signing with Bank
• Processing of Interest Subsidy
• Release of Interest Subsidy
• Maintenance of Databank

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Participating Banks / Institutions
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Banks / FIs who have registered / executed MOU
with IREDA
Public Sector Banks

• 1) Punjab Sind Bank
• 2) Canara Bank
• 3) Bank of Maharashtra
• Vijaya Bank
• Punjab National Bank
• Syndicate Bank
• Andhra Bank
• Dena Bank
• Union Bank of India
• Bank of India
• Oriental Bank of Commerce
• Corporation Bank

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Banks / FIs who have registered / executed MOU
with IREDA
Scheduled Co-operative Banks

• 1) Nagpur Nagarik Sahakari Bank Ltd.
• 2) Jalgaon Janta Sahakari Bank Ltd.
• 3) Kalyan Janta Sahakari Bank Ltd.
• The Akola Janata Commercial Co-operative Bank
  Ltd.
• Pravara Sahakari Bank Ltd.
• Ichalkaranji Sahakari Bank Ltd.
• The Cosmos Co-operative Bank Ltd.
• The Satara District Central Co-op. Bank Ltd.
• Solapur Janata Sahakari Bank Ltd.
• Shikshak Sahakari Bank Ltd.
• The Urban Akola Co-op Bank Ltd.

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Banks / FIs who have registered / executed MOU
with IREDA
RBI Approved NBFCs / Financial Institutions

• 1) Nagarjuna Credits Capitals Ltd.
• Bhonsale Leasing Finance Co. Ltd.
• SREI Infrastructure Finance Ltd.
• Madhya Pradesh Financial Corporation Ltd.

Private Sector Banks

• The Ratnakar Bank Ltd.
• The United Western Bank Ltd.
• The Jammu Kashmir Bank Ltd.

Regional Rural Banks

• Uttaranchal Grameen Bank
• Marathwada Grameen Bank
• Karnataka Vikas Grameen Bank
• Gurgaon Gramin Bank

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Observations of IREDA
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Observations of IREDA
Contd.
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Observations of IREDA
Contd.
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Year-wise Status on MNRE Interest Subsidy Scheme
on Solar Water Heating System (As on 31.08.2009)
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Suggestions of Banks for expanding business /
implementation of the Programme

• To organize separate interaction meet / awareness
  programme for the Banks during their quarterly
  review meeting organized by the lead bank in that
  area.
• To prepare/provide separate guidelines /
  documentation formalities as required by the
  Banks to extend loans to the end-users.
• To provide circulars / MOU copies on the Solar
  Water Heating System Scheme from the head office
  to the branch offices through internet to enable
  access by all the Bank officials dealing with the
  Programme.
• To consider higher system cost while financing
  solar water heating system to be installed in
  hilly regions for interest subsidy calculations.
• The Banks to take more proactive approach and
  create awareness among their clients past /
  prospective by displaying brochures / leaflets.

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Suggestions of Banks for expanding business /
implementation of the Programme
Contd.

• To inform all the branches from time to time on
  the scheme details and place the Programme
  details on the internet for easy accessibility to
  their officials.
• To provide indicative quarterly targets for the
  branches for sanctioning of the loans under Solar
  Thermal as a new portfolio.
• To have close interaction meet with the
  manufacturers / suppliers / dealers for expanding
  the business and servicing of the clients.
• To prepare separate guidelines on Banks
  requirement for availing loan by the clients
  under Solar Thermal Interest Subsidy Scheme
  preferably in consultation with State Nodal
  Agencies / Manufacturers.

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Suggestions of Banks for expanding business /
implementation of the Programme
Contd.

• Designated Nodal Bank to take initiative to
  collect all claims from various regional branches
  preferably on monthly basis for speedy processing
  of the claims at IREDA
• More awareness programmes through publicity
  campaigns to be organized by Banks / FIs and the
  manufacturers as per the new scheme.
• Close monitoring of commercial systems installed
  by different suppliers by State Nodal Agencies /
  their district officers to get the feedback on
  their performance and cost pattern of the Banks
  for their information and future appraisal of the
  projects.
• To encourage solar water heating systems in
  multi-storey buildings.

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Thank you