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The Cabinet Committee on Economic Affairs on Wednesday approved the equity infusion of Rs 1,500 crore in Indian Renewable Energy Development Agency Limited (IREDA).

IREDA is a mini ratna (Category-1) company under the administrative control of Union Ministry of New and Renewable Energy, which was set up in 1987 to work as a specialised non-banking finance agency for the renewable energy sector.

The infusion is expected to help in generating employment of approximately 10,200 jobs-year and in reducing carbon dioxide equivalent to 7.49 million tonnes annually.

Besides, it will also enable the company to lend Rs 12,000 crore approximately to the renewable energy sector. Also, it will improve capital-to-risk ratio thereby facilitating lending and borrowing operations.

As part of the initiatives in fighting climate change, India aims to increase its non-fossil energy capacity to 500 GigaWatt by 2030. Besides, the country wishes to fulfil 50 per cent of its energy requirements from renewable energy sources by 2030.

Also, the country intends to reduce its total projected carbon emissions by 1 billion tonnes by 2030.

Moreover, the Centre had in 2021 preponed its set deadline to 2025 to meet the target of 20 per cent ethanol blending in petrol. Earlier the target was set for 2030.