The government approved the equity infusion of Rs 1,500 crore in Indian Renewable Energy Development Agency (IREDA) to enable it to lend Rs 12,000 crore to green energy projects.
Context
The government approved the equity infusion of Rs 1,500 crore in Indian Renewable Energy Development Agency (IREDA) to enable it to lend Rs 12,000 crore to green energy projects.
About IREDA
- IREDA, a mini ratna company under the administrative control of the new and renewable energy ministry.
- It was set up in 1987 to work as a specialized non-banking finance agency for the renewable energy sector.
Benefits of the equity infusion
- The equity infusion, approved by the Cabinet Committee on Economic Affairs, will enable IREDA to facilitate the debt requirement of additional renewable energy generation capacity of about 3,500-4,000 Mw.
- This will help in employment generation of nearly 10,200 jobs-year and CO2 equivalent emission reduction of approximately 7.49 Million Tonnes CO2/year.
- At COP26 in Glasgow last November, Prime Minister Narendra Modi announced India's aim to achieve net-zero emissions by 2070 and also committed to achieving 500 GW of installed electricity capacity from non-fossil fuel sources by 2030.
- The country has installed electricity generation capacity of 392 GW, constituting 209 GW of coal and 104 GW of renewables.
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