IREDA will lead the bond issue in 2017-18.

The Ministry of New & Renewable Energy (MNRE) will issue Rs.2,360 crore of bonds in fiscal year 2017-18, proceeds from which be used in the approved programmes/schemes for solar park, green energy corridor and generation-based incentives for wind projects.

The funds will be raised through the Indian Renewable Energy Development Agency (IREDA), said the cabinet which gave approval on 24 May 2017.

The proceeds will also be used to cover defence solar projects, viability gap funding for solar projects, roof-top solar, off-grid/grid-distributed and decentralized renewable power, investment in corporations and autonomous bodies etc.

Such timely investment would boost infrastructure in renewable sector and facilitate achievement of ambitious targets for the renewable energy sector, said a government press note.

The resources raised would be used for developing additional capacity in renewable energy sector which would result in generation of additional employment.

The Government had declared additional finance mobilization of Rs.31,300 crore bonds through NHAI, PFC, REC, IREDA and IWAI in the budget for FYT 2016-17.

As a part of this, the Government had allocated Rs.4,000 crores to IREDA to raise “GOI fully serviced taxable Bonds” on behalf of the MNRE during the FY 2016-17. Out of this allocation, IREDA had raised Rs.1,640 crores as per the requirement of MNRE. The MNRE subsequently approached the Cabinet, to approve raising of the balance Rs.2,360 crores in the year 2016-17. fii-news.com