Cabinet okays Rs 1,500-cr infusion in Indian Renewable Energy Development Agency

The Union Cabinet on Wednesday approved infusion of Rs 1,500 crore in Indian Renewable Energy Development Agency Limited (IREDA). This will enable IREDA to lend Rs 12,000 crore to the renewable energy (RE) sector, Union Minster Anurag Thakur added.

A proposal in this regard was approved by the Cabinet Committee on Economic Affairs.

Briefing reporters after the Cabinet meeting, Information and Broadcasting Minister Anurag Thakur said the decision has been taken in the wake of Reserve Bank of India's (RBI) lending norms.

"This agency was established to finance renewable energy. Its portfolio has increased from Rs 8,800 crore to Rs 28,000 crore in the past 6 years," Thakur said

"But according to RBI, the loan can only be lent on 20 per cent of the net worth. The net worth of IREDA is Rs 3,000 crore. It can lend loans up to Rs 600 crore only," the Union Minister added.

The infusion will benefit employment generation of approximately 10,200 job-years, the cabinet added.

Further, the Union Cabinet also approved scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts. 

It has also approved the extension of tenure of the National Commission for Safai Karamcharis for three years beyond 31st March 2022, Thakur added.