Fund approved for IREDA: Cabinet

22 Jan 2022 Fund approved for IREDA: Cabinet

Posted at 16:11h in Daily current-affairs by khyati khare 0 Comments

0 Likes

Recently the Union Cabinet has approved an investment of Rs 1,500 crore in the Indian Renewable Energy Development Agency (IREDA).
This will enable IREDA to lend Rs 12,000 crore to the renewable energy sector.
Earlier ‘Whistleblower Portal’ was launched by IREDA as a part of ‘Vigilance Awareness Week 2021’.

This equity investment will help create about 10,200 employment opportunities and reduce CO emissions by about 7.49 million tonnes.
An additional equity investment of Rs 1500 crore by the Government of India will enable IREDA.
Facilitating additional capacity of 3500-4000 MW in the Renewable Energy (RE) sector by providing a loan of about Rs 12000 crore.
It will better contribute towards the goals of the Government of India by helping in financing in the field of RE to increase its net worth.
Improving the capital-to-risk-weighted asset ratio (CAR) to facilitate its lending and lending operations.
CRAR, also known as CAR (Capital Adequacy Ratio), is important to ensure that financial organizations have enough to absorb a fair amount of losses before they become insolvent.

It is a Miniratna (Category 1) company functioning under the administrative control of ‘Ministry of New and Renewable Energy’, Government of India.
Its function is to encourage projects related to new and renewable energy sources and to provide financial assistance to them for development.
It has been notified as a ‘Public Financial Institution’ under Section 4A of the ‘Companies Act, 1956’.
It has been registered as a ‘Non-Banking Financial Company’ under the rules of ‘Reserve Bank of India’.
It was incorporated as a Public Limited Company in the year 1987 as a ‘Non-Banking Financial Institution’.
Its objective is to promote, develop and provide financial assistance to projects related to new and renewable energy sources.