Indian Bankers Said to Be Wary of Solar as SunEdison Totters

Indian lenders are becoming increasingly reluctant to finance solar-power projects by foreign companies as bankruptcy looms for SunEdison Inc. in the U.S., creditors familiar with the matter said.

Lenders in Asia’s No. 3 economy are hesitating as the world’s biggest renewable energy company totters and record-low Indian solar tariffs stoke concern that projects could struggle financially, the three people said, asking not to be identified citing the sensitivity of the topic.

That’s a threat to Prime Minister Narendra Modi’s goal of a roughly $100 billion expansion of solar power, aided by foreign investment, a target he set for energy security and to curb fossil-fuel pollution. Indian bankers are sensitive to heightened risk as they grapple with the nation’s worst bad-debt pile up in more than a decade after infrastructure investments soured. Read More…