Government increases fund outlay for renewable energy agency

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SME Times News Bureau | 06 Nov, 2014
The government Wednesday approved the rise of capital share in Indian Renewable Energy Development Agency (IREDA) from the existing level of Rs.1,000 crore to Rs.6,000 crore.

According to a statement released after a cabinet meeting, the funding will be infused, as and when required, based on level of operations.

During the 12th Five Year Plan, the government has targeted 30,000 MW from various renewable energy projects, of which IREDA aims to finance projects of an aggregate capacity of 4,800 MW.

"For this, IREDA would need to mobilize financial resources to the tune of Rs.14,000 crore. A higher level of authorised share capital would facilitate in leveraging higher levels of debt from the market," the government said in a cabinet statement.

The ministry of new and renewable energy (MNRE) has recommended strengthening the equity base of IREDA by infusion of Rs.5,000 crore through rights issue and the IPO route during the 12th Five Year Plan, in line with the integrated energy policy (IEP).