Indian Renewable Energy Development Agency (Ireda), an enterprise under the ministry of new and renewable energy (MNRE), would pump in approximately Rs 17,000 crore to fund renewable energy (RE) sector projects during the 11 th Five Year Plan. The company would raise Rs 1,000 crore from foreign markets in the current financial year to finance the projects, a company official said.
Talking to FE, chairman and managing director of Ireda Debashish Majumdar said the company has been negotiating with several international lenders, including KfW Germany, European Investment Bank and Nordic Bank, to borrow funds. Ireda is expected to receive approximately 70 million euros from KfW Germany in January 2009. Other international lenders would raise the remaining funds, Majumdar added.
According to the Planning Commission estimates, RE projects worth Rs 80,000 crore, which are expected to generate 15,000 mw power, would come up in the Plan. Of this, Mazumdar said, Ireda would pump in Rs 17,000 crore to help generate 5,000 mw power via RE. The company will extend its 70% of finance to wind energy sector while the remaining 30% would cover solar, bio mass and hydro projects. The company is also looking to issue zero coupon bonds to help raise funds, he added.
The government has established Ireda to promote, develop and extend financial assistance for renewable energy and energy efficiency projects by raising funds from domestic and international markets. The company will nearly double its disbursement to Rs 1,000 crore in the current fiscal from Rs 580 crore disbursed in the last financial year, he added.