India weighs low-cost loans for renewable projects hit by power curbs, sources say

Business Recorder reported that India is weighing low-cost loans for renewable energy producers that have lost income because weak transmission lines restricted how much clean power reached the national grid. Four industry sources, speaking on condition of anonymity, said the power ministry is considering loans with low interest and tenures of seven to eight years. The sources estimated that developers have lost about 45 billion rupees ($470.21 million) since February 2025.

Transmission networks have struggled to keep up with rapid growth in green capacity, especially solar, now roughly 162 gigawatts and close to a third of generation capacity, according to government figures. Sources said that in some cases nearly 70%-80% of output from renewable projects failed to reach the grid. Curtailment reached 14% of solar output between April and June, equal to 8,133 gigawatt hours.

Officials at the power and finance ministries had yet to reply to a request for comment, while the government is reportedly checking which projects qualify. Hexa Climate founder Sanjeev Aggarwal said his firm had faced curbs without giving specifics, and such curtailment complicates financing because lenders need confidence in future output. According to rating agency ICRA, roughly a third of the 54.8 GW of recently commissioned clean energy was then routed through temporary transmission lines as of May 2026.