New Delhi: The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi on Wednesday approved the equity infusion of Rs 1500 crore in Indian Renewable Energy Development Agency Limited (IREDA). This equity infusion will help in employment generation of approximately 10200 jobs-year and CO2 equivalent emission reduction of approximately 7.49 million tonnes CO2 per year.

Additional equity infusion of Rs 1500 crore by the Government of India will enable IREDA to lend Rs 12000 crore approximately to the RE sector, thus facilitating the debt requirement of RE of additional capacity of approximately 3500-4000 MW.

It will also enhance its net worth which will help it in additional RE financing, thus contributing better to the Government of India targets for RE and will also enable IREDA to improve the capital-to-risk weighted assets ratio (CRAR) to facilitate its lending and borrowing operations.

IREDA under the administrative control of the Ministry of New and Renewable Energy was set up in 1987 to work as a specialized non-banking finance agency for the renewable energy (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 FIs and banks to lend in the sector. /BI/