Cabinet Allocates 1500 Crore in Indian Renewable Energy Development

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This equity infusion in Indian Renewable Energy Development will help in employment generation of approximately 10200 jobs-year and CO2 equivalent emission reduction of approximately 7.49 million tonnes CO2 per year.

The Newster

Information and Broadcasting Minister Anurag Thakur (ANI)

PM Modi led NDA government at the center today has allocated a massive sum of 1500 crore in renewable energy sector that will help to generate employment of at least 10200 jobs per year.

A press releases from PM’s office said, “The Cabinet Committee on Economic Affairs, chaired by the Prime Minister, Shri Narendra Modi, today approved the equity infusion of Rs.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”, it added.

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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.

The allowance will enhance IREDA’s net worth which will help it in additional RE financing, thus contributing better to the Government of India targets for RE.

The move will also improve the capital-to-risk weighted assets ratio (CRAR) to facilitate its lending and borrowing operations.

A proposal regarding to the allowance has been approved by the Cabinet Committee on Economic Affairs.

After the Cabinet meeting, Information and Broadcasting Minister Anurag Thakur apprised the reporters that the decision has been taken in the wake of RBI’s lending norms

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.

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