IREDA and MNRE sign MoU for annual performance goals

A MoU has been signed between the Indian Renewable Energy Development Agency (IREDA) and the Ministry of New and Renewable Energy (MNRE). The MoU specifies goals that IREDA intends to accomplish during the financial years (FY) 2023–2024 and 2024–2025, in accordance with instructions issued by the Department of Public Enterprises, Ministry of Finance.

The Indian government has set a Rs 43.5 billion target for revenue from operations for IREDA for FY 2023–24 and Rs 52.2 billion for FY 2024–25. The Indian government has also incorporated other important performance parameters in the MoU, which includes return on net worth, NPA to total loans ratio, return on capital employed, earnings per share, and asset turnover. Additionally, the IREDA has posted a 272 per cent jump in the profit after tax and 30 per cent growth in loan disbursements in the first quarter of 2023-24, compared to corresponding period during the FY 2022-23.

In December 2022, the 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. The IREDA funded project will connect to the Bikaner-II 400/220 kV substation. SJVN has bagged the project through the tender floated by IREDA under the CPSU Phase-II, Tranche III scheme for the development of grid-connected solar PV power projects through a competitive bidding process based on VGF support.