Banks plan to simplify the lending norms for small and medium-scale solar panel manufacturers.
The lending norms are to be changed with respect to small and medium-scale solar panel manufacturers due to the surge in duty-free imports from Southeast Asian countries. SBi led a recent meeting in Mumbai with the manufacturers in which they decided to ease the rules and conditions of the lending process. The lenders will be able to take personal guarantees from the owner and not their family members.
Other problems faced during funding were discussed at the meeting held on 18th July by the financial services secretary and the officials from the Ministry of renewable energy. In the presentation by the ministry, the major hindrances found were the limited capital due to the sectoral version of banks and high borrowing costs which are way more than China.
Manish Gupta, the President of the North India Module Manufacturer Association, prioritising the small and medium solar manufacturers, said, “They make up 50% of domestic capacity and generate more employment than mega factories. Surging FTA imports make government support necessary as panel manufacturing will need over Rs 1 lakh crore in investment over the next few years to meet solar targets,”
He further added, ” The PLI(performance linked incentive) scheme has largely benefited big players. Issues are dominated by big players, leaving out small and medium module makers, who account for half of the capacity in the country.” The focus by banks and the government on the small and medium players certainly creates news aspects for growth and opportunity for them and the solar panel industry.
