In the budget of 2021 on Feb 9 , government had committed to provide additional capital of Rs1,500 crores to IREDA , this was fulfilled by the government in the cabinet meeting held on 19th January 2022. (CCEA) & the Union Cabinet approved infusion worth Rs 1,500 crore in the Indian Renewable Energy Development Agency (IREDA)Limited today. This further strengthens the governments push for renewable. Of course , if you compare us with our peer nations such as China , our budgets are low. But given we are a developing nation , this is a good development from the ministry.
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/year.
Additional equity infusion of Rs.1500 crore by Government of India will enable IREDA:
- To lend Rs.12000 crore approximately to the RE sector, thus facilitate the debt requirement of RE of additional capacity of approximately 3500-4000 MW.
- To enhance its networth which will help it in additional RE financing, thus contributing better to the Government of India targets for RE.
- To improve the capital-to-risk weighted assets ratio (CRAR) to facilitate its lending and borrowing operations.
Source : https://pib.gov.in/
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