The Reserve Bank of India (RBI) said bank loans of up to 150m rupees ($2.35m) would be available to fund projects using technologies such as solar and wind.
Renewables joins areas including housing and agriculture on the list of industries eligible for Priority Sector Lending Status, which provides Indian lenders with incentives to offer finance at better rates.
The move is the latest in a string of favourable policy measures towards renewables under the government of Prime Minister Narendra Modi, which has swung behind clean energy since being elected last year.
Tulsi
