IREDA to Raise Rs 4,500 Crore for Renewable Energy Projects

IREDA's board has approved a plan to raise Rs 4,500 crore through various financial instruments, pending statutory and government approvals. The funds are crucial for India to meet its 2030 target of generating 500 GW from renewable energy sources.

The board of state-owned IREDA on Thursday approved a proposal to raise Rs 4,500 crore.

The funds, crucial for India’s renewable energy ambitions, will be raised in one or more tranches through further public offers (FPO), qualified institutional placements (QIP), rights issues, preferential issues, or other permitted modes or combinations, subject to statutory or government approval, IREDA announced in a stock exchange filing.

The types and the number of securities to be issued will be determined later, the company added.

Under the Ministry of New & Renewable Energy, IREDA primarily finances renewable energy projects. The fundraising is significant as India aims to reach a 500 GW renewable energy capacity by 2030, necessitating the addition of approximately 50 GW annually.

(With inputs from agencies.)