New Delhi (IANS) - The Union Cabinet on May 24 accorded its approval to raising bonds worth Rs 2,360 crore for development of renewable energy, an official said. The bonds will be raised during the current financial year by the Ministry of New and Renewable Energy (MNRE) through the Indian Renewable Energy Development Agency (IREDA).
"The resources raised would be used for developing additional capacity in renewable energy sector which would result in generation of additional employment," an MNRE statement said. The funds will be used in approved programmes for solar parks, green energy corridor, generation-based incentives for wind projects, rooftop solar power, and off-grid as well as grid-distributed and decentralized renewable power, among others, it added.
The Union Budget 2016-17 had proposed additional finance mobilisation of Rs 31,300 crore. As part of this, the government had allocated Rs 4,000 crore for raising by IREDA, which has earlier raised Rs 1,640 crore. "The MNRE subsequently approached the cabinet to approve raising of the balance Rs 2,360 crore," the statement said, elaborating on the background to the decision.