New Delhi, Sept. 9 -- Developers of renewable power may get enhanced access to cheaper bank loans in the near future, with the Centre working on a proposal mandating dedicated priority lending for such projects.

The ministry of new and renewable energy (MNRE) is preparing a recommendation to the finance ministry carve out a sub-target under priority sector lending (PSL) for renewable energy projects, two people aware of the development said.

Priority sector lending rules require banks to allocate a specific portion of their loans to sectors such as agriculture and education that might not otherwise receive timely credit. While renewable energy is among the priority sectors, the proposal aims to ensure guaranteed lending to the sector. ...