Cabinet Approved Rs.1,500 Crore Infusion in IREDA

Cabinet Approved Rs.1,500 Crore Infusion in IREDA The Prime Minister's Cabinet Committee on Economic Affairs, chaired by Shri Narendra Modi, today approved a Rs.1500 crore equity infusion in Indian Renewable Energy Development Agency Limited (IREDA). This equity infusion will contribute to the creation of roughly 10200 jobs per year and the reduction of approximately 7.49 million tonnes of CO2 equivalent emissions per year. Government of India's additional equity infusion of Rs.1500 crore will enable IREDA to:

1. To lend around Rs.12000 crore to the RE industry, easing the debt requirement of RE for increased capacity of around 3500-4000 MW.
2. To increase its net worth, which will enable it to obtain further RE finance and hence contribute more to the Government of India's renewable energy targets.
3. To improve its capital-to-risk-weighted-assets ratio (CRAR) in order to enable lending and borrowing.

IREDA was established in 1987 as a micro ratna (Category-1) firm under the administrative authority of MNRE to serve as a specialized non-banking funding agency for the Renewable Energy (RE) industry. With over 34 years of techno-commercial knowledge, IREDA plays a catalytic role in RE project financing, giving FIs/banks confidence to invest in the sector.