The Indian Renewable Energy Development Agency (IREDA) has financed 1,921 projects, with loan commitment amounts totalling over Rs 12,180 crore as of March 31, 2010.

According to an official release, IREDA offers term loans to renewable energy projects at rates slightly more favourable than general commercial lending rates.

Other Government agencies that actively fund renewable energy projects are the Power Finance Corporation, the Rural Electrification Corporation, and Nabard.

Corporate financiers of renewable energy projects in India are primarily concentrated on the large wind and hydropower projects, where captive power generation and the application of accelerated depreciation benefits play a significant role, the release said.

Of late, the growing awareness and favourable policies and regulatory mechanisms (both at the Central and State level) have led to gradual increase in confidence of domestic commercial banks providing loans to renewable energy projects, it said.

A number of micro-finance institutions facilitate the purchase of renewable energy systems such as solar cookers, solar lanterns, or small bio-gas plants in the off-grid areas.

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