- Indian government has tasked its renewable energy development agency IREDA to raise bonds for renewable energy projects
- In Fiscal Year 2017-18, it is expected to generate 23.6 billion INR ($365.7 million)
- This is part of the big target of 40 billion INR ($619.87 million) that it was allotted during FY 2016-17; last financial year, IREDA could raise 16.4 billion INR ($254.15 million)
- MNRE will use the funds to invest in renewable energy projects/schemes/programs including for solar
- Increasing employment in the Indian renewable energy sector will also be a focal point for the government with these funds at hand
Indian Renewable Energy Development Agency (IREDA) will be raising bonds of 23.6 billion INR ($365.7 million) for renewable energy projects during 2017-18. The agency has received approval for the bonds from the Union Cabinet chaired by Indian Prime Minister Narendra Modi.
This 23.6 billion INR is the amount that remained after IREDA raised 16.4 billion INR ($254.15 million) for MNRE during Fiscal Year 2016-17, out of the total targeted 40 billion INR ($619.87 million). MNRE had allocated 40 billion INR for IREDA to raise GOI Fully Serviced Taxable Bonds for 2016-17. It was part of the government’s additional finance mobilization of 313 billion INR ($4.85 billion) worth bonds that it planned to generate through government its agencies NHAI, PFC, REC, IREDA and IWAI.
The Indian Ministry of New and Renewable Energy (MNRE) will use these funds to invest in approved programs and schemes for solar park in the country, the green energy corridor project, generation-based incentives for wind projects, CPSU and defence solar projects, viability gap funding (VGF) for solar projects, rooftop solar, off-grid/grid distributed and decentralized renewable power.
MNRE will also invest in corporations and autonomous bodies. The government would also be looking at using the available resources to develop additional capacity in the renewable energy sector, which is expected to result in new jobs.