Government will infuse Rs 1,500 crore in the Indian Renewable Energy Development Agency Limited (IREDA), thus raising its lending capacity to Rs 12,000 crore.
A proposal regarding this was approved by the Cabinet Committee on Economic Affairs (CCEA) during its meeting held on Wednesday.
Briefing reporters after the Cabinet meeting, information and broadcasting minister Anurag Thakur said the decision has been taken in the wake the RBI's lending norms.
The minister said the infusion of Rs 1,500 crore will enable IREDA to lend Rs 12,000 crore to the renewable sector.
The Cabinet decision will help IREDA to create renewable energy capacity of 3,500 mega watt to 4,000 mega watt.