The Cabinet Committee on Economic Affairs has approved a Rs 15 billion equity infusion in Indian Renewable Energy Development Agency Limited (IREDA). This equity infusion is expected to contribute to the creation of about 10,200 jobs per year and the reduction of approximately 7.49 million tonnes of carbon dioxide equivalent emissions per year.
The equity infusion into IREDA will allow it to: Firstly, to lend Rs 12 billion to the renewable energy sector, easing the debt requirement for additional capacity of around 3,500-4,000 MW. Secondly, to increase its net value, which will enable it to obtain further renewable energy finance and hence contribute more to the Indian government’s renewable energy targets. Thirdly, increase the capital-to-risk-weighted-assets ratio to enable lending and borrowing easier.
Earlier this month, IREDA, under the Ministry of New and Renewable Energy, launched a programme to support the manufacturing and deployment of infrastructure for emerging technologies, green mobility, and charging infrastructure. For emerging technologies, IREDA will provide loans worth up to 70 per cent of the cost. Battery energy storage systems and battery manufacturing are among the emerging technologies, as are projects involving the production of green hydrogen, fuel cells, manufacturing and assembly plants for electric vehicles and associated components, and waste recycling units.