The Reserve Bank of India (RBI) has granted status of an ‘Infrastructure Finance Company (IFC)’ to the Indian Renewable Energy Development Agency (IREDA). It was earlier classified as ‘Investment and Credit Company (ICC)’. With an IFC status, IREDA will now be able to take higher exposure for renewable energy financing. The IFC status will also help the company to access a wider investor base for fund mobilisation, resulting in competitive rates for fundraising.
The recognition of IREDA as an IFC will further increase the investors confidence, enhance the brand value, and create a positive outlook in the market. The grant of IFC status is a recognition of IREDA’s 36 years of infrastructure financing and development with focused development of renewable energy. With IFC status, IREDA will keep contributing towards India’s target of 500 GW installed capacity of non-fossil fuels by 2030.
In January 2023, IREDA signed a Memorandum of Understanding (MoU) with the Ministry of New and Renewable Energy (MNRE) for setting an annual performance target for the year 2022-23. The Indian government has set a target Rs 33.61 billion for the revenue from operations. The Indian government has also set various performance related key parameters such as returns on net worth, returns on capital employed, non performing asset to total loans, asset turnover ratio and earning per share amongst many others.
Also, in December 2022, IREDA signed a loan agreement for Rs 44.4471 billion with SJVN Green Energy Limited for a 1,000 MW solar power project at Bikaner, Rajasthan.