Recently, Prime Minister Narendra Modi-chaired Cabinet Committee on Economic Affairs (CCEA) approved the equity infusion of an amount of Rs 1500 crore in the Indian Renewable Energy Development Agency Limited (IREDA). According to a statement issued by the CCEA, this equity infusion of Rs 1500 crore will help in the generation of employment, about 10200 jobs-year as well as carbon dioxide equivalent emission reduction of nearly 7.49 Million Tonnes CO2 per year. The CCEA in its recent statement has also stated additional equity infusion of Rs 1500 crore by the Modi government will enable the Indian Renewable Energy Development Agency Limited:
- To lend an amount of Rs 12000 crore approximately to the Renewable Energy sector, thus facilitate the requirement of debt of Renewable Energy of an additional capacity of around 3500 to 4000 MW
- To improve its net worth which will help it in additional Renewable Energy financing, thereby contributing better to the Indian government targets for Renewable Energy
- Also, to improve the CRAR (capital-to-risk weighted assets ratio) in order to facilitate its lending as well as borrowing operations
The Indian Renewable Energy Development Agency (IREDA) Limited is a mini ratna (Category-1) firm under the MNRE’s administrative control. The company was set up in the year 1987 to work as a specialised non-banking finance agency for the Renewable Energy sector. With more than 34 years of techno-commercial expertise, the Indian Renewable Energy Development Agency plays a catalytic role in the Renewable Energy project financing which gives confidence to the FIs or banks to lend in the RE sector.
During COP26 summit’s beginning, PM Modi had announced that the country will install 5,00,000 MW of renewable energy capacity by the year 2030. Approximately 50,000 MW solar energy and wind energy capacity is under implementation and projects with a combined 32,000 MW capacity are in various bidding stages.