Indian Renewable Energy Development Agency Limited (IREDA) is a Mini Ratna (Category – I) Government of India Enterprise under the administrative control of the Ministry of New and Renewable Energy (MNRE).
Features of IREDA
- It is a Public Limited Government Company established as a Non-banking financial institution in 1987 engaged in promoting, developing and extending financial assistance for setting up projects relating to new and renewable sources of energy and energy efficiency/ conservation with the motto: “Energy for ever”.
- IREDA has been notified as a “Public Financial Institution” under section 4 ‘A’ of the Companies Act, 1956 and registered as a Non-Banking Financial Company (NFBC) with the Reserve Bank of India (RBI).
Objectives of IREDA
- To give financial support to specific projects and schemes for generating electricity and energy through new and renewable sources and conserving energy through energy efficiency.
- To increase IREDA`s share in the renewable energy sector by way of innovative financing.
- Improvement in the efficiency of services provided to customers through continual improvement of systems, processes and resources.
- To strive to be a competitive institution through customer satisfaction.
Schemes of IREDA
- Loan against securitization of future cash flow of renewable energy projects
. The company should have successfully commissioned existing projects and running successfully for at least the last three years.
. The net present value of the future cash flows will be calculated for a maximum period of 10 years, discounted at the maximum lending rate of the sector.
- Direct discounting of MNRE capital subsidy payable to accredited channel partners (ACP) and state nodal agencies (SNA) for installation of solar water heating systems
. Extent of assistance is up to 80% of the existing pending eligible capital subsidy claim, as verified by the IREDA.
. Minimum loan assistance is 20 lakhs.
- Credit enhancement guarantee scheme for raising bonds towards renewable energy projects
. It aims to enhance the credit rating of the bonds, thereby improving the marketability and liquidity.
. The minimum stand-alone credit rating (external) of the RE project/ proposed bond structure to be credit enhanced should be at least BBB.
