Green light for IPO boosts India’s renewable energy ambitions

India’s cabinet has been given a public listing of the state-run Indian Renewable Energy Development Agency (Ireda), as the country forges ahead with plans to boost its green energy production.

The Indian government’s Cabinet Committee on Economic Affairs on Wednesday approved for an initial public offering.

India requires tens of billions of dollars as it strives towards dramatically increasing its use of non-fossil fuels and reduce its dependence on coal and oil. Ireda is a financial institution which provides financial support to renewable energy projects in India.

The Indian government is moving towards selling shares in Ireda in an effort to raise the much-needed funds to finance the development of its green energy sector.

“The public issue of equity will enable Ireda to increase its equity base which will help them raise more debt resources for funding renewable energy projects,” the Indian government said in a statement. “Such public issue will also enable it to unlock its true value and increase its visibility in domestic and international financial markets.”

It added that Ireda “will be required to raise equity funds to leverage loan financing for the renewable energy sector”.

Ireda plans to issue 13.9 million shares, priced at 10 rupees each, but the government has not yet specified a date for when the IPO will be launched.

Ireda, which was established three decades ago, has worked with private companies in the power sector. It has supported a number of renewable energy projects in the country and has played a role in the commercialisation of sustainable energy technologies in the country.

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