Cabinet nod to up authorized share capital of IREDA to Rs 6kcr

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Government today gave its nod to raise the authorized share capital of Indian Renewable Energy Development Agency (IREDA) to Rs 6,000 crore from Rs 1,000 crore.
"The Cabinet today at the meeting chaired by Prime Minister Narendra Modi gave its approval to raise the authorized share capital of the IREDA from the existing level of Rs 1000 crore to Rs 6000 crore," a government release said.
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 aims to finance projects of an aggregate capacity of 4800 MW.

"For this, IREDA would need to mobilize financial resources to the tune of Rs 14,000 crore. A higher level of authorised share capital would facilitate in leveraging higher levels of debt from the market," the release added.
The approval does not involve any immediate requirement of funding. Infusion of equity, as and when required, would be based on level of operations, it further said.
The MNRE has recommended strengthening of the equity base of IREDA by infusion of Rs 5,000 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 is a public financial institution established in 1987 under the Company's Act, 1956 and has played a pioneering role in supporting and facilitating the policies and programs of the MNRE.
IREDA which is registered as a Non-Banking Financial Company with the Reserve Bank of India, has also been supporting the establishment of renewable energy projects and has greatly succeeded in the commercialization of sustainable energy technologies in the country and has primarily worked with private sector enterprises operating in the power sector.