MNRE approves infusion of Rs 10 billion in SECI

The Ministry of New and Renewable Energy has approved an equity infusion of Rs 10 billion in Solar Energy Corporation of India Limited (SECI). According to the government, the funding will enable SECI to publish more creative tenders for project development and facilitate the development of 3.3 GW of renewable energy projects.

Recently, the Cabinet Committee on Economic Affairs 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: lend Rs 12 billion to the renewable energy sector thus easing the debt requirement for additional capacity of around 3,500-4,000 MW, 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, increase the capital-to-risk-weighted-assets ratio to enable lending and borrowing easier.

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