HomeBusinessCabinet Clears Rs 1,500cr for Indian Renewable Energy Development Agency, Other Announcements

Cabinet Clears Rs 1,500cr for Indian Renewable Energy Development Agency, Other Announcements

Union Cabinet Decision: The Union Cabinet Committee of Economic Affairs chaired by Prime Minister Narendra Modi on Wednesday, January 19, took a host of decisions regarding different sectors days ahead of the Budget presentation. The main announcements were made for the banking sector, ‘Safai karamcharis’, and the renewable energy development sector. The decisions were notified by Union minister Anurag Singh Thakur on the day. For the renewable energy department, the government approved an infusion of Rs 1,500 crore in Indian Renewable Energy Development Agency Limited (IREDA). For the banking sector the Cabinet Committee gave nod to ex-gratia payment for ‘interest on interest’, the minister announced.

Here are the Key Announcements made by the Cabinet Committee Today:

Infusion of Rs 1,500 crore in Indian Renewable Energy Development Agency Limited (IREDA)

The Cabinet approved the equity infusion of Rs.1500 crore in Indian Renewable Energy Development Agency Limited (IREDA). It said that this will help the agency lend Rs 12,000 crore to the renewable energy sector and boost its growth, while enhancing its net worth.

“This equity infusion will help in employment generation of approximately 10200 jobs-year and CO2 equivalent emission reduction of approximately 7.49 Million Tonnes CO2/year,” the government said in a press release.

This decision will also help the IREDA to “improve the capital-to-risk weighted assets ratio (CRAR) to facilitate its lending and borrowing operations,” the statement from the government noted.

Approval of Ex-Gratia Payment of Rs 973.74 crore for ‘Interest on Interest’

The government further approved an ex-gratia payment of Rs 973.74 crore for ‘interest on interest’ to lending institutions charged during pandemic. “The Union Cabinet chaired by Hon’ble Prime Minister Shri Narendra Modi has approved the payment of ex-gratia amount of Rs. 973.74 crore pertaining to remaining claims submitted by Lending Institutions (LIs) under Scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts (1.3.2020 to 31.8.2020),” said a statement.

“By granting ex-gratia payment of difference between compound interest and simple interest during the six month moratorium period to distressed/vulnerable category of borrowers, irrespective of whether the borrower had availed of moratorium or not, the scheme would equitably help small borrowers bear the stress on account of the pandemic and get back on their feet,” it added.

Extension of Tenure of National Commission for Safai Karamcharis

The Cabinet Committee for Economic Affairs chaired by PM Modi also decided to extend the tenure of the National Commission for Safai Karamcharis for three years beyond March 31 this year.

The total implication of the extension for three years would be approximately Rs.43.68 crore, the government noted.

“The major beneficiaries would be the Safai Karamcharis and identified manual scavengers in the country since the NCSK for 3 more years beyond 31.3.2022. The number of Manual Scavengers identified under the MS Act Survey as on 31.12.2021 is 58098,” it said in a press release.

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