Solar Energy Society of India (SESI) welcomes the Cabinet approval to 1500 crores equity infusion into the Indian Renewable Energy Development Agency (IREDA). With this additional equity infusion, IREDA will be able to improve its capital-to-risk (CRAR) and scale up its lending and borrowing capacity to 12,000 crores.
The government has a target of setting up 450 GW green energy capacity as part of its COP26 net-zero commitment. This equity infusion is expected to facilitate additional funding to the renewable energy projects and add another 3500-4000-megawatt capacity in the country. This step will help reduce carbon emission by 7 million tons per year and generate employment for 10,000 youth.
Prafulla Pathak, President, SESI termed this as a timely and remarkable step for the renewable energy sector in India by the government. Mr Pathak said, “On one hand, we need growth in the renewable energy sector as we have committed in the international arena. On the other hand, the industry is passing through a pandemic situation; hence it needs support from the government. Once the developers/ entrepreneurs are given support, they can start new renewable energy projects and resume stalled ones.”
Congratulating IREDA Prafulla Pathak said, “IREDA has been working in the field of promoting renewable energy for last three decades. With this equity infusion, people will engage more with IREDA bringing momentum to the renewable sector.”
“As organizations both IREDA and SESI have been creating awareness in their own ways. Now social media is playing a great role in our efforts to create awareness. I want to urge the young entrepreneurs to take advantage of this step by the government through IREDA to boost the renewable energy sector. Along with big players, the financial help will help those small startups and young entrepreneurs who need funding support the most. I am confident that the government and IREDA have taken this step keeping this in view,” he added.
“IREDA has been doing excellent work over the decade in the field of renewable energy. This equity infusion by the government will further empower IREDA in extending financial support to the renewable energy players in the country”, said Ajay Prakash Shrivastava, Past President SESI. SESI and IREDA have been working relentlessly for the renewable energy sector over the years. From the year 1990 to 2010, both organizations had been sharing a very close bonding and playing a complementary role to each other for the development of the renewable energy sector.