Cabinet approves Rs 1,500 cr equity infusion in IREDA

The Union Cabinet chaired by Prime Minister Narendra Modi, approved the equity infusion of Rs 1,500 crore in the Indian Renewable Energy Development Agency Limited (IREDA). The equity infusion will generate 10,200 jobs per year and reduce carbon dioxide emissions to about 7.49 million tonnes per annum (mtpa). It will further lend Rs 12,000 crore to the renewable energy sector, facilitating the debt requirement of renewable energy of additional capacity of about 3,500-4,000 MW. It will enhance its net worth to help additional financing of the renewable energy sector, boosting the government target for renewable energy. It will also improve the capital-to-risk weighted assets ratio (CRAR) to facilitate lending and borrowing. IREDA, under the Ministry of New and Renewable Energy (MNRE), was established in 1987 to operate as a specialised non-banking finance agency for the renewable energy sector. It has over 34 years of experience as a techno-commercial expert, financing renewable energy projects through financing institutions and banks to lend in the renewable energy sector. Image Source Also read: IREDA rolls out a new program to boost green mobility Also read: Govt to increase fund allocation for solar PLI scheme to Rs 240 bn