Funds infusion for IREDA

A fund infusion of Rs.1500 crore was approved for the Indian Renewable Energy Development Agency Ltd. (IRDEA) by the cabinet. Besides claims of generating employment by direct creation of 10,200 jobs, it is deemed crucial to reduce the carbon footprint. Carbon equivalent emission reduction of an estimated 7.49 mn tonnes could be achieved on an annual basis. The move will help IREDA to lend Rs.1200 crores to the RE sector which in turn will facilitate the debt requirement of RE. It is expected to support an additional capacity of 3500-4000 MegaWatt (MW). Set up in 1987 under MNRE, IREDA is Non-Banking Finance (NBFC) agency for the RE sector. This again is expected to boost the confidence of financial institutions (banks) to lend to the sector.