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Government infuses Rs 1500 crore in IREDA to boost renewable energy

With this infusion, the IREDA would be able to lend Rs.12000 crore to the RE sector, and thus facilitate the debt requirement of RE of additional capacity of approximately 3500-4000 MW.

Statesman News Service | New Delhi |

The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved an equity infusion of Rs 1500 crore in the Indian Renewable Energy Development Agency (IREDA)  to promote renewable energy.

The equity infusion would also help in employment generation of approximately 10200 jobs per year in the Renewable Energy (RE) sector and CO2 equivalent emission reduction of approximately 7.49 Million Tonnes CO2/year, said a senior officer of the Power Ministry.

With this infusion, the IREDA would be able to lend Rs.12000 crore to the RE sector and thus facilitate the debt requirement of RE of additional capacity of approximately 3500-4000 MW.

The move would further enhance the net worth of the company that would help it in additional RE financing and helps in meeting India targets for RE. In addition to this, the capital infusion would also improve the capital-to-risk weighted assets ratio (CRAR) to facilitate its lending and borrowing operations, the Ministry said.

IREDA is a mini ratna (Category-1) company under the administrative control of MNRE and is the only company that has more than 34 years of techno-commercial expertise. It was set up in 1987 to work as a specialized non-banking finance agency for the Renewable Energy (RE) sector.  IREDA also plays a catalytic role in the RE project financing which gives confidence to the FIs/banks to lend in the sector, the Ministry said.