IREDA to raise Rs 4,500 crore for renewable energy projects

IREDA raising money: The Indian Renewable Energy Development Agency (IREDA) will raise Rs 4,500 crore as part of the capital to be supported in the form of shares for the growth and development of the renewable energy sector in India. The state-owned company will consider raising the capital at the upcoming board meeting on the 29th of August.

The funds would be mobilised in one or more tranches through FPO, QIP, Rights Issue Preferential Issue, or any other mode or combination, subject to the necessary approvals. This assumes significance at a time when IREDA is playing the role of a financial institution engaged in promoting and developing renewable energy projects at a time when the clean energy ambitions of India enter into a crucial phase of execution.

Ambitious targets have been set for India to achieve 500GW of renewable energy capacity by 2030, an additional requirement of about 50GW per annum. IREDA will be in a position to provide vital financing support to renewable energy projects and, therefore, play a vital role in realizing the green energy goals set by the country with these funds.

IREDA Chairman and Managing Director Pradip Kumar Das said he was confident the agency could drive growth in renewable energy in India. "This successful capital raise will allow us to further ramp up our efforts in financing green energy projects to support the country's mission of reaching the target of 500 GW non-fossil fuel installed capacity by 2030," he added.

The exercise fundraising epitomizes the commitment of IREDA toward the catalyzing of sustainable development and clean energy solutions to ensure that there is sustained growth across the country. With IREDA being one of the major constituents within the renewable energy ecosystem, efforts could be expected which will have interests from investors and hasten the deployment of technologies related to renewable energies.

(With PTI Inputs.)