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Recently, the Prime Minister -chaired Cabinet Committee on Economic Affairs (CCEA) approved the equity infusion of an amount of Rs 1500 crore in the Indian Renewable Energy Development Agency Limited (IREDA). According to a statement issued by the CCEA, this equity infusion of Rs 1500 crore will help in the generation of employment, about 10200 jobs-year as well as carbon dioxide equivalent emission reduction of nearly 7.49 million Tones CO2 per year. The CCEA in its recent statement has also stated additional equity infusion of Rs 1500 crore by the Modi government will enable the Indian Renewable Energy Development Agency Limited:

To lend an amount of Rs 12000 crore approximately to the Renewable Energy sector, thus facilitate the requirement of debt of Renewable Energy of an additional capacity of around 3500 to 4000 MW

To improve its net worth which will help it in additional Renewable Energy financing, thereby contributing better to the Indian government targets for Renewable Energy

Also, to improve the CRAR (capital-to-risk weighted assets ratio) in order to facilitate its lending as well as borrowing operations.

The Indian Renewable Energy Development Agency (IREDA) Limited is a mini ratna (Category-1) firm under the MNRE’s administrative control. The company was set up in the year 1987 to work as a specialized non-banking finance agency for the Renewable Energy sector. With more than 34 years of techno-commercial expertise, the Indian Renewable Energy Development Agency plays a catalytic role in the Renewable Energy project financing which gives confidence to the FIs or banks to lend in the RE sector.