Cabinet approves infusion of ₹1500 crore in Indian Renewable Energy Development Agency

Due to this decision of the Union Cabinet, about 74.9 lakh tonnes of carbon emissions will be reduced every year in India.

The Cabinet Committee on Economic Affairs on Wednesday, Jan 19 approved the equity infusion of Rs 1500 crore in the Indian Renewable Energy Development Agency Limited (IREDA).

“This will enable IREDA to lend Rs 12,000 crores to the renewable energy sector,” Union Minister, Anurag Thakur said. According to the press release, the equity infusion will assist in employment generation of around 10200 jobs-year.

Additional equity infusion of Rs 1500 crore by the Government of India will allow IREDA to lend Rs 12000 crore approximately to the RE sector, consequently facilitating the debt requirement of RE of additional capacity of approximately 3500-4000 MW and to enhance its net worth which will aid it in extra RE financing, therefore contributing better to the Government of India targets for RE. It will further help to improve the capital-to-risk weighted assets ratio (CRAR) to facilitate its lending and borrowing operations.

Due to this decision of the Union Cabinet, about 74.9 lakh tonnes of carbon emissions will be reduced every year in India. This decision of the government is being considered as an important step towards tackling climate change.

Indian Renewable Energy Development Agency Limited (IREDA) was established on 11th March 1987 as a Public Limited Government Company under the Companies Act, 1956 and it promotes, develops and extends financial assistance for Renewable Energy and Energy Efficiency/Conservation Projects.

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