As part of the Union's 2021-22 Budget, the Government of India announced an additional capital infusion of Rs. 10 billion to the Solar Energy Corporation of India (SECI) and Rs.15 billion to the Indian Renewable Energy Development Agency (IREDA).
The capital infusion of Rs 10 billion will enable SECI to tender for 15 000 MW of new solar energy generation capacity a year. This is estimated to attract annual investment of more than Rs. 600 billion, generate employment of 45,000 job years and reduce emissions by 28.5 million tons of CO2 per year. This same capital infusion will also enable SECI to deliver innovative projects with an investment value of around Rs.170 billion.
The Government of India's equity infusion of Rs. 15 billion to IREDA would support an extension of their loan facility of Rs. 120 billion to support renewable energy, additional to IREDA's existing loan balance sheet of Rs. 270 billion. The additional equity will help improve IREDA's financial position to support lower interest rates for IREDA and renewable energy project developers. This investment is estimated to support financing of around 4 500 MW of renewable energy projects valued from Rs 180 to 190 billion, employment of 13,500 job years and reduce emissions by 8.55 million tons of CO2.