Cabinet approves Rs 1,500 crore infusion in IREDA to boost renewable energy financing
The Union Cabinet headed by Prime Minister Narendra Modi on Wednesday approved the infusion of Rs 1,500 crore in the Indian Renewable Energy Development Agency (IREDA). This will enable IREDA to lend Rs 12,000 crore to the renewable energy sector, Union Minister Anurag Thakur said.
Briefing reporters after the Cabinet meeting, Thakur said the decision was taken in the wake the Reserve Bank of India’s (RBI’s) lending norms. He said this Cabinet decision will help IREDA to create renewable energy capacity of 3,500 to 4,000 MW.
The fresh infusion will also enhance IREDA’s net worth which will help it in additional renewable energy financing. It will also improve the capital-to-risk weighted assets ratio to facilitate its lending and borrowing operations, the government informed in a release.
