New Delhi, Jan 19 (Bureau) The Union Cabinet on Wednesday approved Rs 1,500 crores of equity infusion into Indian Renewable Energy Development Agency Ltd (IREDA) to help the entity lend more for capacity creation in renewable energy sector. With the additional equity infusion, IRDEA would be able to provide finances for creating 3500-4000 MW of renewable energy capacity. Briefing media regarding the Cabinet decision, Union Information & Braodcasting (I&B) Minister Anurag Thakur said that portfolio of IREDA had increased in the last six years. “In last six years, portfolio of IREDA has increased from Rs 8,800 crore to Rs 28,000 crore. But as per RBI rules, only 20% of your networth you can give in the form of loans. IREDA’s networth is Rs 3,000 crore. So, they have the limit of giving loan of only Rs 600 crore to single borrower.
Today, it was decided that Rs 1,500 crore equity infusion would be done. As a result of this additional equity, IRDEA would now be able to lend upto Rs 12,000 crore in the renewable energy sector. This will provide finances for creating a capacity of 3500-4000 MW of renewable energy,” Thakur said. The decision is set to enhance IREDA’s capital-to-risk weighted assets ratio to facilitate its lending and borrowing operations. The government hopes that the additional capacity creation in renewable energy space as a result of equity infusion into IREDA would create about 10,200 job-years. The Cabinet chaired by Prime Minister Narendra Modi also approved the payment of ex-gratia amount of Rs 973.74 crores pertaining to remaining claims submitted by lending institutions under Scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts. At the time of Covid pandemic, the burden of loan on both business and individuals had increased and government had provided moratorium on loans repayment.
It had come up with the scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts. Budget allocation of Rs 5,500 crores was made for the scheme in FY 2020-2021. The whole amount of Rs 5,500 crores been disbursed to SBI, the nodal agency under the scheme for consequent reimbursement to lending institutions. “Now, SBI has informed that it has received consolidated claims of Rs 6,473.74 crore approx. from lending institutions. As Rs 5,500 crore has already been disbursed to SBI, approval of the Cabinet is now being sought for balance amount of Rs 973.74 crore,” an official statement said. The Cabinet in its meeting today also approved the extension of the tenure of the National Commission for Safai Karamcharis (NCSK) for three years beyond March, 2022. The total implication of the extension for three years would be about Rs 43.68 crore.