Guwahati: The Union Cabinet on Wednesday authorized a Rs 1,500 crore infusion into the Indian Renewable Energy Development Agency Limited (IREDA), a PSU under the Ministry of New and Renewable Energy.
According to Union Minister Anurag Thakur, this will allow IREDA to grant Rs 12,000 crores to the renewable energy sector.
He said, this will enhance its net worth which will help it in additional Renewable Energy financing. The Minister said, it will also improve the capital-to-risk weighted assets ratio to facilitate its lending and borrowing operations. The decision will generate employment over ten thousand jobs every year.
Thakur said that this will increase the company’s net worth, which will benefit it in obtaining additional Renewable Energy financing.
He further stated that it will also increase its capital-to-risk-weighted-assets ratio in order to facilitate its lending and borrowing activities. Every year, nearly ten thousand jobs will be created as a result of the decision.
However, IREDA is in the process of setting up a debt fund in the form of an Alternate Investment Fund (AIF) to attract major institutional investors such as pension funds, insurance funds, and environmental, social, and governance funds, among others. The AIF will also assist IREDA in funding new projects for borrowers who are approaching their exposure limit. The company also intends to use Pass-Through Certificates to undertake Asset-Based Securitization (ABS).