Generation Based Incentive

Bridge Loan Against Generation-Based Incentive (GBI)

Home » Learn » Government Initiatives » Bridge Loan Against Generation-Based Incentive (GBI)

Bridge Loan Against Generation-Based Incentive (GBI)

The Generation Based Incentive (GBI) was introduced and implemented by the Ministry of New and Renewable Energy (MNRE) for grid interactive wind and solar power projects with the primary aim to broaden the investor base. The GBI loans were announced to provide necessary finances for solar power projects and interactive grid wind. The main objective of the initiative is to broaden the investor base, to provide a level playing field to various classes of investors and to facilitate the entry of large independent power producers into the necessary sectors. Generation Based Incentive (GBI) for 3 year offers INR 2.00 per unit (kWh) of Gross Solar Energy generated.

The Generation Based Incentive (GBI) Scheme of MNRE is the Indian Renewable Energy Development Agency (IREDA) for Wind and Solar Power projects within India. The GBI claims are processed by the IREDA based on the submission of invoice and Joint Meter Reading (JMR) by the developers.

Under the bridge loan against generation-based incentive (GBI) scheme, a GBI wind electricity producers will be provided with Rs.0.50 per unit of electricity that is fed into the grid with a capital of Rs.100 lakhs per MW for not less than 4 years and a maximum of 10 years. The total disbursement in a year should not exceed one-fourth of the maximum limit of the incentive of Rs.25 lakh per MW.

Applicable Industries

  • Renewable energy
  • Clean energy
  • Green energy

The Bridge loan against generation-based incentive (GBI) is headed by the Indian Renewable Energy Development Agency (IREDA)

Extent of Assistance

  • The Bridge loan against generation-based incentive (GBI) provides up to 80% of the existing pending eligible GBI claim, as verified by the IREDA GBI group.
  • Minimum loan assistance of Rs.20 Lakhs.

Determination of Loan Amount

Based on the verification provided by IREDA, the GBI groups that have ‘pending account of non-availability of funds’ are eligible for the GBI claim of the applicant are also in line with existing GBI policy.

Fiscal Incentives

A minimum loan amount of INR 20 Lakhs is provided under this scheme. The loan amount that has to be recovered out of GBI proceeds whether received/to be received from MNRE. If there are any shortfalls, then it shall be recovered from the borrower, and this will be payable on demand.

Interest Rate

10.80% p.a. (0.90% p.m.) is to be adjusted from the GBI receipts from MNRE against the claim made by them. If there are any shortfalls, then it will be payable by the borrower on demand. The interest shall be calculated on a daily basis and will be charged during the currency of the Bridge loan/adjusted against the GBI release by MNRE/till the same is paid/paid by the borrower.


The Loan amount taken under the bridge loan against generation-based incentive (GBI) is to be recovered out of ‘GBI proceeds received/to be received from MNRE’.


The charge on GBI is the receivables from MNRE. The charge will be created by the borrower within the given period of time, as indicated by ROC.

Special condition

  • The total amount of bridge loan should be within the unutilized funds of Government Budget/loan assistance/MNRE Scheme for Generation Based Incentive (GBI) for Grid Interactive Solar & Wind Power project.
  • If it is felt that the payment/recovery of GBI amount against which the initial loan assistance had been provided is doubtful, the borrower shall be liable to pay on demand the entire amount including the interest and any other required charges to IREDA.
  • In case there is any shortfall then the IREDA shall also have the option to adjust the dues against any other such claim of the borrower that is being handled by the IREDA.

Application Submission Procedure

The following link can be used to download the application form:

Required documents that are to be submitted with the application form

  1. A copy of the Article of Association (AAO)/Partnership deed (if applicable) and Memorandum of Articles (MOA) has to be submitted along with the application form.
  2. The board resolution for availing the bridge loan, the various conditions of the scheme and for complying required terms has to be submitted along with the application form.
  3. A Specimen copy of signature and of Authorized officials that are required for the signing of documents.

Other Related Guides

IREDA NCEF Refinance Scheme IREDA NCEF Refinance Scheme India is facing a major challenge in providing suitable and superior quality power for domestic and industrial purpose. T...
Telangana State Industrial Policy Telangana State Industrial Policy The Government of Telangana has formulated the new Industrial Policy, which aims at providing sustainable industria...
Tripura Industrial Investment Promotion Incentives... TIIPIS The State Government has introduced the Tripura Industrial Investment Promotion Incentives Scheme (TIIPIS) offers incentives for setting up in...
Delhi Mumbai Industrial Corridor Delhi Mumbai Industrial Corridor The Delhi-Mumbai Industrial Corridor (DMIC) is one of the world’s largest infrastructure projects, and India’s most ...
Global Environment Friendly (GEF) Scheme Global Environment Friendly (GEF) Scheme The Ministry of New & Renewable Energy (MNRE) in partnership with the United Nations Industrial Developm...

Post by Arnold Thomas

IndiaFilings is India's largest online compliance services platform dedicated to helping people start and grow their business, at an affordable cost. We were started in 2014 with the mission of making it easier for Entrepreneurs to start their business. We have since helped start and operate tens of thousands of businesses by offering a range of business services. Our aim is to help the entrepreneur on the legal and regulatory requirements, and be a partner throughout the business lifecycle, offering support at every stage to ensure the business remains compliant and continually growing.