A top consultancy firm predicts that the Indian central bank's proposals on project financing may raise borrowing costs for renewables projects by up to 1%, potentially leading to increased wind and solar power prices. Lenders may have to reserve 5% of capital for infrastructure projects under construction, compared to the current 0.4% norm. As projects mature and start generating cash, the allocation can decrease to as low as 1%. These changes could make it harder for construction projects to secure financing, impacting the pace of renewable energy deployment as India aims to accelerate green energy installations to meet future goals.
