The Reserve Bank of India’s (RBI) recent decision to cut interest rates by 50 basis points has brought cheer to the renewable energy sector, with stakeholders describing the announcement as a significant tailwind. Industry insiders said the rate cut, the third since the year began, has the potential to reduce the borrowing costs for renewable energy projects. Besides the repo rate cut, the 100 basis-point reduction in the Cash Reserve Ratio will unlock ₹2.5 trillion (~$29.1 billion) for onward lending by banks. Stakeholders said the rate cut will mean more liquidity will get injected into the system, which is already conducive to renewable energy development.