The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi, today (19 January) approved the equity infusion of Rs 1,500 crore in Indian Renewable Energy Development Agency Limited (IREDA), an official release said.
“This equity infusion will help in employment generation of approximately 10,200 jobs-year and CO2 equivalent emission reduction of approximately 7.49 million monnes CO2 per year,” the Ministry of New and Renewable Energy (MNRE) said in a release on Wednesday (19 January).
According to the ministry, the additional equity infusion of Rs 1,500 crore by the Centre will enable IREDA:
- To lend Rs 12,000 crore approximately to the renewable energy (RE) sector, thus facilitating the debt requirement of RE of additional capacity of approximately 3,500-4,000 MW.
- To enhance its networth which will help it in additional RE financing, thus contributing better to the government’s targets for RE.
- To improve the capital-to-risk weighted assets ratio (CRAR) to facilitate its lending and borrowing operations.
IREDA, a mini ratna company under the administrative control of MNRE, was set up in 1987 to work as a specialised non-banking finance agency for the Renewable Energy (RE) sector.
With more than 34 years of techno-commercial expertise, the IREDA plays a catalytic role in the renewable project financing which gives confidence to the FIs/banks to lend in the sector, the ministry said.