Attended the Indian Banks Association seminar on “Financing Low Carbon Economy”. The discussions brought forward the challenges being faced by Indian banks in financing low carbon economy.
It was a learning experience to listen to views presented by all bankers. Mr.Yaspal Gupta from IDBI spoke on how banks and government can work together to finance not so feasible low carbon projects keeping in view the necessity of such projects for the environment. Mr.Gupta put forward an idea of cess on projects that generate more than expected carbon gases. This fund can be used to finance the not so viable low carbon projects. Ofcourse this requires policital will and creation of new policies. I am not sure if we will be able to see this happening soon. Though a similar cess has been added on coal in the recent budget.
Second point brought forward was the use of renewable energy for communities where power cuts are norm. I think this is a valid and feasible idea. Considering that we all are running around for the solar policy to be declared, this is a business area that is getting neglected.
Similar views were expressed by Mr.Rakesh Bhalla from IREDA. I would like to use this platform to thank Mr.Bhalla for taking out sometime to discuss the business model for green buildings. It would be exciting to meet him again and take forward our discussion.