Govt approves IPO of IREDA

The government has approved an initial public offering (IPO) of Indian Renewable Energy Development Agency (IREDA), enabling it to mobilise funds for the clean energy sector. The Cabinet Committee on Economic Affairs (CCEA) on Wednesday allowed IREDA to issue fresh 139 million shares, increasing the paid-up share capital of the company from Rs 784 crore to Rs 923 crore. At present the company has 784.6 million equity shares.

The quantum of funds to be raised through the IPO will be ascertained later as the shares will be issued at a premium through the book-building process, which will lead to price discovery.

Following CCEA’s approval, it will take 180 days to list IREDA, which is a state-owned non-banking financial firm. IREDA has plans to disburse Rs 13,000 crore for clean energy projects in FY18 and is vying for around 20 per cent of the loan market share for such projects. The Cabinet also approved a proposed MoU between the EXIM Bank and its Korean counterpart for export credit of $9 billion for infrastructural development in India and for the supply of goods and services as part of projects in third countries.

The agreement will be signed between the two banks during the forthcoming visit of Finance Minister Arun Jaitley, to Seoul, Korea during June 14-15 for the Annual Financial Bilateral Dialogue.

The export credit will be utilised through lending by EXIM Bank for priority sectors, including smart cities, railways, power generation and transmission etc., in India. The government has also taken measures for to convert the Ahmedabad-Vadodara highway into a six-lane one, with the Cabinet allowing the Indian Institute of Soil and Water Conservation to transfer 4.64 hectares of land in Gujarat to NHAI.

Other decisions:

| Ex-post facto approval to agreement between Bureau of Indian Standards and Mali's Direction Nationale De Industries for standardi-sation and conformity assessment of goods

| Nod to sign and ratify agreement on transfer of sentenced persons between India & Somalia

| Ex-post facto approval to agreement signed in April between India and Cyprus on merchant shipping, aimed at enhancing cooperation between the 2 nations for sea trade development

| Dr B Borooah Cancer Institute, Guwahati, to be taken over by the Department of Atomic Energy and bring it under the administrative control of Tata Memorial Centre

| MoU between Sebi and European Securities and Markets Authority