Cabinet approves infusion of Rs 1,500 crore in Indian Renewable Energy Development Agency Ltd

New Delhi: The Union Cabinet on Wednesday approved infusion of Rs 1,500 crores in Indian Renewable Energy Development Agency Limited (IREDA), the PSU under Ministry of New & Renewable Energy.

This will enable IREDA to lend Rs 12,000 crores to the renewable energy sector, Union Minister Anurag Thakur said.

In September last year, Pradip Kumar Das, Chairman & Managing Director (CMD), IREDA highlighted that, “despite the pandemic regime, IREDA completed the FY 2020-21 on second highest loan disbursements (since inception) amounting to Rs. 8,827 Crore, highest ever Profit Before Tax of Rs. 569.52 Crore with an increase of 136.20% over the amount of Rs. 241.11 Crore in the previous year and a net reduction in NPA from 7.18% in the previous year to 5.61% ending FY2020-21, which is a significant reduction of approx. 22% from the previous year.

IREDA is in the process of setting up a debt fund in the form of an Alternate Investment Fund (AIF) to tap large Institutional Investors such as Pension funds, Insurance Funds, Environmental, Social and Governance Funds, etc. AIF will also help IREDA in financing new projects of those borrowers who are nearing the exposure limit. The company is also planning to do Asset-Based Securitisation (ABS) by issuance of Pass-Through Certificates.