 "Illustration: Ajay Mohanty")
Given the challenges faced by domestic financial institutions and the limitations of both international and domestic bond markets, the chances of India achieving its renewable energy target by 2030 look grim in the present scenario, according to a study conducted by CEEW-Centre for Energy Finance. It has, therefore, suggested a subsidised first-loss cover facility to credit-enhanced bonds raised by the developers and institutions looking to refinance their underlying projects.
To instantly ward off defaults, it could be a fully-funded facility with a facility manager, under the guidance of the board of trustees. The proposed facility will pay off bond investors in
