CCEA approves infusion of Rs 1,500 crore in IREDA
New Delhi, January 19, 2022
The Cabinet Committee on Economic Affairs (CCEA) today approved an equity infusion of Rs 1,500 crore in the Indian Renewable Energy Development Agency Limited (IREDA).
This equity infusion will help in employment generation of approximately 10,200 jobs per year and CO2 equivalent emission reduction of approximately 7.49 million tonnes CO2/year, an official press release said.
The additional equity infusion of Rs 1500 crore by the Government will enable IREDA to lend Rs 12,000 crore approximately to the renewabe energy (RE) sector, thus facilitating the debt requirement of RE of additional capacity of approximately 3,500-4,000 MW.
It would enhance its net worth which will help it in additional RE financing, thus contributing more to the targets for RE. It would improve the capital-to-risk weighted assets ratio (CRAR) to facilitate its lending and borrowing operations, the release said.
IREDA, a Mini Ratna (Category-1) company under the administrative control of the Ministry of Renewable Energy was set up in 1987 to work as a specialised non-banking finance agency for the RE sector.
IREDA with more than 34 years of techno-commercial expertise, plays a catalytic role in RE project financing, the release added.