MNRE to approach Finance Ministry to raise Rs 10,000 crore via tax free bonds

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NEW DELHI: Ahead of the Budget, the Ministry of New and Renewable Energy is planning to approach Finance Ministry to seek its permission for raising Rs 10,000 crore through issuance of tax free bonds in order to fund the clean energy projects in the country.

The government has ambitious plans for deployment of 175 GW renewable power capacities by 2022.
“The Ministry of New and Renewable Energy (MNRE) will soon write to the Finance Ministry for allowing it to raise Rs 10,000 crore through tax free bonds as the market is growing and there is a requirement of a lot of funds,” according to a source.

The government will present the Union Budget for 2016-17 on February 29.

Finance Minister Arun Jaitley had earlier announced in the Budget 2015-16 that he would permit PSUs to raise funds through tax-free bonds for development of infrastructure.

The government had earlier approved the sale of tax-free bonds worth Rs 5,000 crore to support the government’s solar mission through various agencies.

“IREDA (Indian Renewable Energy Development Agency Ltd) is assigned an amount of Rs 2,000 crore for the job,” MNRE Joint Secretary Tarun Kapoor had earlier said.

He, however, did not disclose the details of remaining Rs 3,000 crore.

IREDA is a public-limited government company set up to promote, develop and extend financial assistance for renewable energy and energy efficiency/conservation projects within the country.
The government has ambitious plans for deployment of 175 GW renewable power capacities by 2022, including 100 GW of solar and 60 GW of wind, which may require investment of around USD 150 billion in the next seven years.

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