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24 Mr. Kuljit Singh Popli Chairman and Managing Director, Indian Renewable Energy Development Agency IREDA “The bond market not only improves market liquidity and diversifies the investor base for the renewable energy sector but also brings down the cost of capital. This in turn helps in meeting the financing requirement for upcoming capacity additions” Energetica India talks to Mr. Kuljit Singh Popli, CMD, IREDA on the coming year and IREDA’s tax free bonds to boost growth of renewable energy in the country ENERGETICA INDIA: What kind of new initiative /change do you foresee IREDA playing for the growth of renewable energy in India in the coming few years? MR. KULJIT SINGH POPLI: Since its inception in 1987, IREDA has played a seminal role in the commercialization of renewable energy technologies in the country by providing innovative and customized financing requirements. IREDA comes out with new and innovative financing schemes from time to time in line with the market demand and requirements. By the end of financial year 2014-15, IREDA has sanctioned more than 2200 clean energy projects with cumulative disbursements amount to INR 16,939 Crores in the country. Recently, IREDA has introduced some new financial products/ instruments to address the market needs in financing renewable energy projects. New and innovative initiatives such as funding under VGF scheme, higher Debt Equity ratio for Solar and Wind Projects , bridge loan scheme & Short term loan assistance, structured repayment with longer tenor of 10 – 15 years in Solar/ Wind energy sector, new scheme namely “Securitization of future cash-flows” for meeting the additional fund requirements for future business expansion in RE projects and NCEF refinancing scheme to revive existing biomass power and small hydro projects (upto 5 MW) are in line with the focus area of Government of India and national missions. The government’s roadmap for 175 GW of renewable energy by 2022 provides huge business opportunity for IREDA. Our endeavour would be to finance / co-finance by retaining our leadership position in financing RE projects in India. ENERGETICA INDIA: IREDA is coming out with tax-free bonds. Please let us know how will this money be used? MR. KULJIT SINGH POPLI: The proceeds from the tax free bonds shall be utilized majorly for the purpose of financing, re-financing renewable energy and energy efficiency projects, augmenting the resource base of the company and setting up of renewable energy projects. ENERGETICA INDIA: Are tax-free bonds viable for renewable energy investment in India? Please explain? MR. KULJIT SINGH POPLI: The bond market not only improves market liquidity and diversifies the investor base for the renewable energetica INDIA · JAN | FEB16 INTERVIEW


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