The union cabinet on Wednesday approved a proposal for issue of bonds for raising Rs2,360 crore for renewable energy programmes. The ministry of new and renewable energy (MNRE) will raise the bonds through the Indian Renewable Energy Development Agency (IREDA) during the 2017-18.
These funds will be used by MNRE in the approved programmes/schemes for solar park, green energy corridor, generation-based incentives for wind projects, CPSU and defence solar projects, viability gap funding for solar projects, roof-top solar, off-grid/grid-distributed and decentralized renewable power, investment in corporations and autonomous bodies etc.
The funds will help meet timely investment needs and would boost infrastructure in renewable sector and facilitate achievement of ambitious targets for the renewable energy sector, an official release stated.
The resources raised would be used for developing additional capacity in renewable energy sector, which would also result in generation of additional employment, it noted.
The government had declared additional finance mobilisation of Rs31,300 crore bonds through NHAI, PFC, REC, IREDA and IWAI in the budget for FYT 2016-17. Of this, the government had allocated Rs4,000 crore to IREDA to raise `GOI fully serviced taxable Bonds' on behalf of the MNRE during the FY2016-17. Out of this, IREDA had raised Rs1,640 crore as per the then requirement. Subsequently the MNRE approached the cabinet for approval for raising of the balance Rs2,360 crore in the year 2016-17.