Cabinet Nod for Rs 1,500 Cr Equity Infusion in IREDA

The Cabinet Committee on Economic Affairs (CCEA) has approved the equity infusion of Rs 1,500 crore in renewable energy industry major lender Indian Renewable Energy Development Agency Ltd (IREDA).

This equity infusion would further help in the employment generation of approx 10,200 jobs-year and CO2 equivalent emission reduction of approx 7.49 million tonnes CO2/year.

The additional Rs 1,500 crore equity infusion by the Government would enable mini ratna company, IREDA, to lend Rs 12,000 crore approx to the renewable energy sector, thus facilitate the debt requirement of renewable energy of additional capacity of approx 3,500 to 4,000 MW.

It will also help IREDA in enhancing its net-worth which would help it in additional renewable energy financing, thus contributing better to the Government’s target for renewable energy.

Besides, it will also help IREDA in improving 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 sector.