Lagatar24 Desk
New Delhi, Jan 19: The Union Cabinet on Wednesday approved the infusion of Rs 1,500 crore in Indian Renewable Energy Development Agency Limited (IREDA).
Union Minister Anurag Thakur noted that this will allow IREDA to lend Rs 12,000 crore to the renewable energy (RE) sector. The Cabinet Committee on Economic Affairs has adopted a proposal in this regard.
Following the Cabinet meeting, Information and Broadcasting Minister Anurag Thakur told reporters that the decision was made in light of the Reserve Bank of India’s (RBI) lending standards.
“The Union Cabinet has approved infusion of Rs 1,500 crores in Indian Renewable Energy Development Agency Limited (IREDA). This will enable IREDA to lend Rs 12,000 crores to the renewable energy sector,” said Union Minister Anurag Thakur.
“This agency was established to finance renewable energy. Its portfolio has increased from Rs 8,800 crore to Rs 28,000 crore in the past 6 years,” he said.
“But according to RBI, the loan can only be lent on 20 per cent of the net worth. The net worth of IREDA is Rs 3,000 crore. It can lend loans up to Rs 600 crore only,” he added.
The infusion will benefit employment generation of approximately 10,200 job-years.
Notably, under the MNRE, IREDA is a small ratna firm. It was founded in 1987 as a non-banking funding organisation specialising in renewable energy. IREDA is a crucial player in renewable energy project financing, as it offers financial institutions and banks confidence to lend in the field.
