Rs.12,000cr to facilitate RE debt requirement
The Cabinet Committee on Economic Affairs has approved on 19 Jan 2022 the equity infusion of Rs.1,500 crore in Indian Renewable Energy Development Agency Limited (IREDA), saying the funding will help in CO2 equivalent emission reduction of approximately 7.49 Million Tonnes CO2/year.
Additional equity infusion of Rs.1,500 crore by the Government will enable IREDA:
To lend Rs.12,000 crore approximately to the Renewable Energy (RE) sector, thus facilitate the debt requirement of RE of additional capacity of approximately 3,500-4,000 MW;
To enhance its net-worth which will help it in additional RE financing, thus contributing better to the Government targets for RE;
To improve the capital-to-risk weighted assets ratio (CRAR) to facilitate its lending and borrowing operations.
IREDA, a Category-1 company under the administrative control of Ministry of New and 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 the RE project financing which gives confidence to the Financial Institutions and banks to lend in the sector. fiinews.com
