Govt to pump Rs1,500-cr capital into Indian Renewable Energy Development Agency
24 January 2022
Employment generation of approximately 10200 jobs-year and CO2 equivalent emission reduction of approximately 7.49 Million Tonnes CO2/year
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi on Wednesday approved equity infusion of Rs1,500 crore in Indian Renewable Energy Development Agency Limited (IREDA).
Additional equity infusion of Rs1,500 crore by Government of India will enable IREDA to lend approximately Rs12,000 crore to the RE sector, thus facilitating the debt requirement of the renewable energy sector of additional capacity of approximately 3,500-4,000 MW.
This equity infusion will help in employment generation of approximately 10,200 jobs annually and CO2 equivalent emission reduction of approximately 7.49 million tonnes of CO2 per year.
The capital infusion will enhance IREDA’s networth, which will help it in additional financing, thus contributing better to the government’s renewable energy targets.
An improvement in the capital-to-risk weighted assets ratio (CRAR) will also facilitate its lending and borrowing operations.
IREDA, a Mini Ratna (Category-1) 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. IREDA with more than 34 years of techno-commercial expertise, plays a catalytic role in the RE project financing which gives confidence to the FIs/banks to lend in the sector.