The Cabinet Committee on Economic Affairs, chaired by the Prime Minister, Narendra Modi, has approved the equity infusion of INR 1500 crore in Indian Renewable Energy Development Agency Limited (IREDA).
This equity infusion will help in employment generation of approximately 10200 jobs-year and CO2 equivalent emission reduction of approximately 7.49 Million Tonnes CO2/year.
Additional equity infusion of Rs.1500 crore by Government of India will enable IREDA:
- To lend Rs.12000 crore approximately to the RE sector, thus facilitate the debt requirement of RE of additional capacity of approximately 3500-4000 MW.
- To enhance its networth which will help it in additional RE financing, thus contributing better to the Government of India targets for RE.
- To improve the capital-to-risk weighted assets ratio (CRAR) to 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.