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SBP issues new directive on energy plants financing

The State Bank of Pakistan (SBP) on Monday enhanced the capacity limit of all renewable power projects from 10 megawatt to 20 megawatt for financing under the scheme for financing power plants using renewable energy.

In a statement the State Bank said, banks and development finance institutions (DFIs) can consider financing requests of the sponsors, who intend to set up power projects up to a maximum capacity of 20MW, using all types of renewable energy sources eligible under the scheme.

The maximum financing limit to a single renewable power project under the scheme has also been fixed at Rs3 billion to accommodate larger number of borrowers. However, banks/DFIs may continue to provide financing facilities as per their credit policies over and above the maximum limit from their own sources subject to adherence to the prudential regulations, the circular added. SBP has taken these steps to promote power plants using renewable energy in the country after receipt of feedback from the Alternative Energy Development Board, the circular said.

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