Reliance Capital to get Rs 300 cr from IREDA for lending to renewable sector

Anil Ambani Group’s Reliance Capital Indian Renewable Energy Development Agency Limited (IREDA) will make available Rs 300 cr for lending to renewable energy and energy efficiency projects.

IREDA is a Government of India Enterprise under the administrative control of Ministry of New and Renewable Energy (MNRE).

Reliance Commercial Finance Limited, the company subsidiary that operates the ‘Reliance Money’ brand, is already lending to the renewable energy space, especially related to solar & wind energy.

“Our partnership with IREDA opens new opportunities for us to create solutions for renewable power sector” said Mr. Devang Mody, Executive Director and CEO, Reliance Commercial Finance Limited.

RCFL has assisted wind and solar energy sectors by financing or co-financing projects of more than 1800 MW.

RCFL provides financial assistance for developing infrastructure and other projects targeted towards the government initiatives on renewable energy.

The Narendra Modi-led government is keen to build up both India’s renewable power capacity as well as develop manufacturing facilities in India for solar equipment.

‘Prayas’, part of Prime Minister Narendra Modi’s ‘Make in India” campaign, aims to create 5 GigaWatts(GW) of photovoltaic manufacturing capacity from 2019 and build 20 GW of projects in the country by 2026.

Separately, the government plans to raise renewable capacity to 175 GW by 2022 from 45 GW at present.

“With the PM’s vision of promoting renewable energy we too understand the importance of what right financing will do to the sector,” said IREDA CMD K.S. Popli.

Reliance Capital Limited is one of the country’s top private sector financial services groups and is present in life and general insurance; commercial and home finance; stock broking; wealth management services; distribution of financial
products; asset reconstruction and proprietary investments.

IREDA is an NBFC tasked with promoting, developing and extending financial assistance for setting up projects relating to new and renewable sources of energy and energy efficiency and conservation.