Last month the Power Finance Corporation of India (PFC) issued a so-called green bond in London. It is a 10-year green bond that raised USD 400 million paying a 3.75 percent semi-annual coupon and listed on London Stock Exchange's new International Securities Market (ISM).
The cost of money therefore, ignoring the semi-annual payment, is 3.75% of USD 400 mio (million) which is USD 15 mio per year and USD 150 mio over 10 years which is a total repayment of USD 550 mio over 10 yrs.
Assuming the Photovoltaic power plants are grid connected without battery storage, the cost per Watt will be around USD 1/W, so the USD 400 mio is buying 400 mio Watt or 400 thousand kW.
With around 1500 hours of sunshine in a year it will generate 600 mio kilowatt hours per year or 6 billion kilowatt hours over 10 years. So, cost of money of USD 550 mio divided by 6 billion kWh = USD 0.092, say USD 0.1 per kWh. So, the cost of this so called Green Bond to the consumer raised by PFC is 0.1 USD x 60 Rs/USD = Rs 6 per KWh.
So Indian consumers are sending Rs 6 per kWh to European rentiers like British, Canadian and other pensioners and such like non-workers just because the Government of India is too lazy to print its own money.
One has to ask one's self what the purpose of the constitutional provision of a public debt is in this country, let alone what the purpose of a public finance corporation is, if the Indian Government is too lazy to print its own money and finance its own finance companies and instead commits an already totally impoverished population to sending Rs 6 per unit of electricity abroad every year.
It is one thing to send money for petroleum. But to send money so completely unnecessarily for electricity in which India always was and always can be completely self-sufficient is shameful and undignified.
Anandi Sharan was born in Switzerland, lives in Bangalore, and worked in Araria District in 2016. She mainly writes about India and how we need a better money policy to help agricultural labourers and women especially to adapt to man-made climate change.BLOG COMMENTS POWERED BY DISQUS