India’s premier agency to promote renewable energy has announced plans to sanction as much as Rs 13,000 crore ($2 billion) for projects in FY2017-18.
According to media reports, Indian Renewable Energy Development Agency (IREDA) will sanction debt finance worth Rs 13,000 crore ($2 billion) for renewable energy projects across the country in financial year 2017-18, i.e. between 1 April 2017 and 31 March 2018.
By sanctioning this amount, IREDA will likely capture a fifth of the debt finance market for renewable energy projects in FY2017-18. Of the sanctioned amount, more than 60% will be disbursed within the financial year. The agency has already sanctioned a cumulative of Rs 37,000 crore ($5.66 billion) and has disbursed a total of Rs 28,000 crore ($4.28 billion). This translates into debt finance for 7,000 megawatts of capacity.
Loan sanctions by IREDA have grown from Rs 826 crore ($126 million) in 2007-08 to Rs 7,806 crore ($1.2 billion) in 2015-16 and is expected to cross Rs 10,000 crore ($1.5 billion) in the current financial year, 2016-17. Loan disbursements have also increased from Rs 553 crore ($81.5 million) in 2007-08 to Rs 4,257 crore ($651 million) and is expected to cross Rs 6,000 crore ($917 million) in 2016-17.
IREDA is also planning to launch an equity fund worth $2 billion to boost renewable energy development. The initial funding of $1 billion will be available starting next financial year, April 2017. The Clean Energy Equity Fund (CEEF) will see contributions from the central government as well as some state-owned companies. Around $600 million will be contributed from the National Investment and Infrastructure Fund, under the Ministry of Finance, with the balance contributed by state-owned companies NTPC Limited, Rural Electrification Corporation, and Indian Renewable Energy Development Agency (IREDA).
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