Renewable power: SBP extends financing to larger projects

SBP enhanced the capacity limit of all renewable power for financing under the Scheme for Financing Power Plants

KARACHI: The State Bank of Pakistan (SBP) has enhanced the capacity limit of all renewable power for financing under the Scheme for Financing Power Plants Using Renewable Energy. Banks and development finance institutions (DFIs) can now consider financing requests of sponsors who intend to set up power projects up to a maximum capacity of 20 megawatts, using all types of renewable energy sources eligible under the Scheme, said a circular issued to the presidents and CEOs of all banks and DFIs Monday. The maximum financing limit to a single renewable power project under the scheme has also been fixed at Rs3 billion to accommodate a larger number of borrowers. However, banks and DFIs may continue to provide financing facilities as per their credit policies over and above the maximum limit from their own sources, subject to adherence to the Prudential Regulations, the circular added.

Published in The Express Tribune, July 31^st, 2012.