The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved infusion of ₹1,500 crore in Indian Renewable Energy Development Agency Limited (IREDA), which will help generate 10,200 jobs a year and reduce carbon emissions equivalent to approximately 7.49 million tonnes per year.
The additional equity infusion will enable the mini-ratna company under the ministry of new and renewable energy to lend ₹12,000 crore approximately to the renewable energy sector, thus facilitating the sector’s debt requirement of additional capacity of approximately 3,500-4,000 megawatt (MW), the CCEA said after its meeting on Wednesday.
The equity infusion will also enhance the specialised non-banking finance agency’s net worth, which will help it in additional financing, thereby contributing better to the government’s targets.
It will also improve the capital-to-risk weighted assets ratio to facilitate its lending and borrowing operations, the CCEA said in a statement.
Union information and broadcasting minister Anurag Thakur said the IREDA played a big role in the field of renewable energy and its portfolio had increased from ₹8,800 crore to ₹28,000 crore in the past six years.
“But according to RBI (Reserve Bank of India), the loan can only be lent on 20% of the net worth. The net worth of IREDA is ₹3,000 crore. It could lend loans up to ₹600 crore only,” Thakur said, noting the importance of the decision.
Separately, the Union Cabinet approved a scheme for grant of ex gratia payment of ₹973.74 crore, the difference between compound interest and simple interest for six months, to borrowers in specified loan accounts.
The government had approved the scheme for six months during the first wave of the Covid-19 pandemic between March 1 and August 31, 2020, providing an outlay of ₹5,500 crore for FY21 for distressed or vulnerable borrowers who have taken loans of up to ₹2 crore in the categories of MSME, housing, education, consumer durables, credit card dues, auto loans, personal or professional loans and consumption loans.
State Bank of India (SBI), the nodal agency under the scheme for consequent reimbursement to lending institutions, told the government that it had received consolidated claims of ₹6,473.74 crore, higher than the allocated amount, and has therefore sought additional allocation of the balance amount.
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