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With traditional power sector hamstrung by fuel shortage and climate change getting top billing at World Economic Forum summit in Davos, the government has lined up a INR 5,000-crore, or $800 million, push to promote green energy capacity. The ministry of new and renewable energy proposes to raise the authorised share capital of Ireda ( Indian Renewable Energy Development Agency) from INR 1,000 crore at present to INR 6,000 crore through this infusion.

The proposal envisages the government pumping in INR 2,500 crore, while the remaining funds are to be raised through rights issue and initial public offering of Ireda shares. The government funding would be concurrent to the IPO and rights issue. The ministry's move gains a wider significance in the backdrop of global business leaders and policymakers at the ongoing WEF summit, asking for a shift to cleaner energy sources as the best way to contain global warming and re-energize the global economy.

Agency reports on Thursday quoted UN climate chief Christiana Figueres as saying , the world economy is at risk unless a binding deal is agreed in Paris next year to reduce heat-trapping carbon emissions from fossil fuels. Ireda was set up in 1987 as a 100% government funding agency for renewable energy sources such as solar, wind and small hdro power projects. Its authorised share capital was last raised by INR 600 crore to INR 1000 crore in 2006-07. Against this authorized capital, the agency has a paid-up share capital of over INR 744 crore.

Source-On Request