The Indian government's Cabinet Committee on Economic Affairs has approved INR 15 billion ($201.6 million) as equity infusion for the government owned renewable energy financier for clean energy, Indian Renewable Energy Development Agency (IREDA).
Working as a non-banking financial institution under the Ministry of New and Renewable Energy (MNRE), IREDA said this capital will enable it to lend an additional INR 120 billion ($1.61 billion) to the renewable energy sector, facilitating debt requirement of an additional 3.5 to 4 GW renewables capacity.
IREDA also believes this financial support will enhance its net worth to secure additional renewable energy financing, and improve the capital-to-risk weighted assets ratio (CRAR) to facilitate its lending and borrowing operations.
It will also lead to employment generation of around 10,200 jobs annually, while bringing down CO2 equivalent emissions of approximately 7.499 million ton CO2 annually.
Among the most high profile projects IREDA is handling for the Government of India is the Production Linked Incentive (PLI) scheme through which India is incentivizing integrated PV production in the country (see IREDA Qualified Bidders For Solar PLI Scheme).
In April 2020, MNRE handed over the responsibility of CPSU Phase-II to IREDA, taking it from the Solar Energy Corporation of India (SECI). Through this scheme, India aims to build 12 GW solar power capacity by 2023 for government and government affiliated organizations.
IREDA CMD Pardip Kumar Das said the agency is all geared up to launch its initial public offering (IPO) in the near future.