The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Wednesday approved the equity infusion of `1,500 crore in Indian Renewable Energy Development Agency (IREDA). This comes at a time when the state-run lender is preparing to float its initial public offering. Apart from enhancing net-worth and improve its capital adequacy ratio, the equity infusion will enable IREDA to lend additional Rs 12,000 crore in the renewable energy sector, which is seen to facilitate capacity addition of around 4,000 mega-watt (MW).
“We are immensely thankful to government of India and the ministry of new and renewable energy (MNRE) without whose support this wouldn’t have been possible,” Pardip Kumar Das, CMD, IREDA, said. In the first six months of the ongoing fiscal, IREDA has reported a profit of Rs 299.9 crore. IREDA, a mini-ratna company under the administrative control of the MNRE, was set up in 1987 to work as a specialised non-banking finance agency for the renewable energy sector.
In the beginning of the COP26 summit, along with the 2070 ‘net-zero’ target, Modi had announced that the country will install 5,00,000 MW of renewable energy capacity by 2030. About 50,000 MW solar and wind energy capacity is under implementation and projects entailing combined capacity of 32,000 MW are in various stages of bidding. Including hydro power projects, the current installed renewable energy capacity in the country is more than 1,50,000 MW. More than 9,000 MW of large hydro projects are under construction at present, and another 26,000 MW of these are expected to be added by 2030.