The Union Cabinet chaired by the Prime Minister Narendra Modi has given its approval to Raising of Bonds of Rs. 2,360 crores for Renewable Energy.
The Bonds will be raised by the Ministry of New & Renewable Energy (MNRE) through the Indian Renewable Energy Development Agency (IREDA) during the 2017-18. These funds will be used by MNRE in the approved programmes and schemes for solar park, green energy corridor, generation-based incentives for wind projects, Central Public Sector Undertaking (CPSU) and defence solar projects, viability gap funding for solar projects, roof-top solar, off-grid and grid-distributed and decentralised renewable power, investment in corporations and autonomous bodies among other areas. Such investment is expected to boost infrastructure in renewable sector and facilitate achievement of ambitious targets for the renewable energy sector. The resources raised would be used for developing additional capacity in renewable energy sector which would result in generation of additional employment.
The Government had declared additional finance mobilisation of Rs. 31,300 crore bonds through National Highways Authority of India (NHAI), Power Finance Corporation (PFC), Rural Electrification Corporation (REC), IREDA and Inland Waterways Authority of India (IWAI) in the Union Budget for FY 2016-17. As a part of this, the Government had allocated Rs. 4,000 crores to IREDA to raise “GOI fully serviced taxable Bonds” on behalf of the MNRE during the FY 2016-17. Out of this allocation, IREDA had raised Rs. 1,640 crores as per the requirement of MNRE. The MNRE subsequently approached the Cabinet to approve raising of the remaining Rs. 2,360 crores in the year 2016-17.