The cabinet committee on economic affairs approved an equity infusion of Rs 1500 crore in the Indian Renewable Energy Development Agency Limited (IREDA) to give a boost to the renewable energy sector.
“This equity infusion will help in employment generation of approximately 10200 jobs per year and CO2 equivalent emission reduction of approximately 7.49 million tonnes CO2 per year,”
IREDA, a mini ratna company under the administrative control of the Ministry of New and Renewable Energy, was set up in 1987 to work as a specialised non-banking finance agency for the renewable energy (RE) sector. The agency provides techno-commercial expertise and plays a catalytic role in the RE project financing which gives confidence to the financial institutions and banks to lend in the sector.
The additional equity infusion of Rs.1500 crore will enable IREDA to lend Rs 12000 crore to the RE sector, thus facilitating the debt requirement of RE of additional capacity of approximately 3500-4000 MW. It will also help its net worth and improve the capital-to-risk weighted assets ratio (CRAR) to facilitate its lending and borrowing operations.
