Cabinet approves infusion of Rs.1,500 crore in Indian Renewable Energy Development Agency Limited (IREDA)
- Press Information Bureau
- January 20, 2022
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi, today approved a Rs.1500 crore (US$ 201.6 million) equity investment in Indian Renewable Energy Development Agency Limited (IREDA). This equity infusion will contribute to the creation of roughly 10200 jobs per year and the reduction of approximately 7.49 million tonnes of CO2 equivalent emissions per year.
The Government of India's further equity infusion of Rs.1500 crore (US$ 201.6 million) will enable IREDA to:
- To lend roughly Rs.12000 crores (US$ 1.612 billion) to the RE industry, hence easing the debt requirement of RE for increased capacity of approximately 3500-4000 MW.
- To increase its net value, which will assist it in obtaining greater RE finance and so contribute more to the Government of India's RE targets.
- To enhance lending and borrowing activities, the capital-to-risk-weighted-assets ratio (CRAR) must be improved.
IREDA was established in 1987 as a micro ratna (Category-1) firm under the administrative authority of MNRE to serve as a specialised non-banking funding agency for the Renewable Energy (RE) industry. With over 34 years of techno-commercial knowledge, IREDA plays a catalytic role in RE project financing, giving FIs/banks confidence to invest in the sector.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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