The Cabinet meeting chaired by the Prime Minister, Shri Narendra Modi gave approval to increase the accredited share capital of the Indian Renewable Energy Development Agency (IREDA) from the present level of Rs.1000 -6000 crore.
Any immediate funding transaction is not involved and infusion of equity, as and when required, would be based on level of operations.
During the 12th Five Year Plan, Ministry of New and Renewable Energy (MNRE) has targeted 30,000 MW from various renewable energy projects out of which IREDA targets finance projects of 4800 MW.
For this, IREDA will have to organize financial resources up to Rs.14,000 crore. A higher level of share capital will simplify in leveraging higher levels of debt from the market.
The MNRE has suggested solidification of the equity base of IREDA by infusion of Rs.5000 crore through rights issue and the IPO route during the 12th Five Year Plan, in line with the Integrated Energy Policy (IEP) of the Government.
IREDA has played a pioneering role in facilitating the policies and programs of the MNRE that has encouraged the renewable energy industry in the country.
Sabeena Wahid
editor@greentechlead.com