Govt nod for Ireda IPO to boost clean energy, Rs 2,776-crore HP road project

The decision by the committee, chaired by PM Narendra Modi, would allow Ireda to issue 13.9 crore fresh equity shares of Rs 10 each to the public.

By: ENS Economic Bureau | New Delhi | Published:June 8, 2017 1:39 am

The Cabinet Committee on Economic Affairs on Wednesday approved Indian Renewable Energy Development Agency’s (Ireda) plan to float an initial public offer of its shares. The decision by the committee, chaired by PM Narendra Modi, would allow Ireda to issue 13.9 crore fresh equity shares of Rs 10 each to the public. The move is expected to enable Ireda to increase its equity base, which will help it raise more debt resources for funding renewable energy projects. It will also increase the company’s visibility in domestic and international financial markets. Ireda chairman and managing director KS Popli said in March that the company has plans to sanction Rs 13,000-crore credit to clean energy projects in FY18, which would constitute about 20 per cent of the renewable energy financing market.

In the ongoing financial year, Ireda has sanctioned loans of Rs 1,220.6 crore for various renewable energy projects. Out of this, Rs 925.7 crore has already been disbursed. Solar and wind projects have received maximum sanctions at Rs 734 crore and Rs 225 crore, respectively, till date in this financial year. The company recorded an after-tax profit of Rs 363.7 crore in the financial year ended March — a 22 per cent year-on-year increase. Revenue in FY17 was Rs 1,582 crore, about 35 per cent higher than the previous financial year. Interest earnings constituted nearly 89 per cent of its revenue.

As the country aims to reach the renewable energy target of 175,000 MW by 2022, the renewables industry is in need of substantial investments. Ireda has primarily worked with private sector enterprises operating in the power sector since its inception in 1987. 4-laning of `2,776-cr HP road gets nod The Centre on Wednesday approved four-laning of a road stretch to be developed at an estimated cost of Rs 2,776-crore in Himachal Pradesh. The decision on the same was taken at the CCEA meeting, chaired by Prime Minister Narendra Modi.

The CCEA has given its “approval for development of four-laning from the ‘end of Pandoh Bypass to Takoli’ section of National Highway (NH)-21 in Himachal Pradesh”, the ministry of road transport and highways said in a statement. The project will help in expediting the improvement of infrastructure in Himachal Pradesh and in reducing the time and cost of travel for traffic, particularly heavy traffic, plying from ‘end of Pandoh Bypass to Takoli’ section, it said. “The cost is estimated to be Rs 2,775.93 crore, including cost of land acquisition, resettlement and rehabilitation and other pre-construction activities. The total length to be developed is approximately 19 km,” it said.

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