The Union Cabinet chaired by Prime Minister Narendra Modi has given its approval to raise Rs.23.6 billion (~$364 million) from bonds for renewable energy development in the country, according to a PIB release. The bonds will be raised by the Ministry of New and Renewable Energy (MNRE) through the Indian Renewable Energy Development Agency (IREDA) during FY2017-18.

In the budget for FY2016-17, the government had approved mobilization of bonds worth Rs.40 billion (~$617 million) through IREDA to raise “Government of India fully serviced taxable bonds” on behalf of the MNRE. Out of this allocation, IREDA had raised Rs.16.4 billion (~$253 million) as per MNRE’s requirement. This announcement approves the raise of the remaining balance of Rs.23.6 billion (~$364 million) in the current financial year.

These funds will be used by MNRE in the approved programs for solar park, green energy corridor, generation-based incentives for wind projects, Central Public Sector Undertakings (CPSUs) and defence solar projects, viability gap funding (VGF) for solar projects, rooftop solar, off-grid/grid-distributed and decentralized renewable power, investment in corporations and autonomous bodies etc. It is expected that this investment will boost infrastructure in the sector and help achieve the renewable energy targets set by the MNRE.

Mercom recently reported, the Asian Development Bank (ADB) has raised Rs.3 billion (~$47 million), from a new issue of offshore Indian Rupee-linked bonds in an effort to finance climate change mitigation and adaptation projects in India.