Share capital of IREDA to be raised to Rs 1,000 cr

New Delhi, Mar 1 (UNI) The Union Cabinet today approved the raising of the authorised share capital of the Indian Renewable Energy Development Agency Ltd (IREDA) from Rs 400 crore to Rs 1,000 crore.

This was announced by Information and Broadcasting Minister Priya Ranjan Dasmunsi after the Cabinet meeting.

IREDA, a non-banking finance company under the administrative control of the New and Renewable Ministry, is planning a major thrust to lending to off-grid and energy efficiency projects and opening up new lines of business in carbon trading under the Clean Development Mechanism of the Kyoto Protocol.

The disbursement to achieve these aims during the 11th Plan are estimated to be Rs 8,250 crore.

While about Rs 2,100 crore is expected from internal accruals, equity and reserves and surpluses, Rs 6150 crore would need to be mobilised through debt in order to meet the aims.

IREDA's net worth as on March 31, 2006 was Rs 643 crore consisting of equity of Rs 400 crore and reserves and surpluses of Rs 243 crore.

Enhanced authorised share capital of IREDA would facilitate in leveraging higher levels of debt from the market in keeping with the company's strategy for the 11th Plan.

UNI