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Indian Renewable Energy Development Agency Ltd. (IREDA) today, signed a Memorandum of Understanding (MoU) with Bank of India (BoI) for co-lending, co-origination, and loan syndication for Renewable Energy projects. The MoU was signed at the Bank of India headquarters in Mumbai in the distinguished presence of Shri Pradip Kumar Das, CMD, IREDA, and Shri Atanu Kumar Das, MD & CEO, Bank of India by Dr. R. C. Sharma, GM & CFO, IREDA, and Shri Vasu Dev, GM, Bank of India. The MoU will empower IREDA and BoI to co-lend and co-originate for Renewable Energy projects including Small Hydro and Ethanol projects. Both organisations will also strive to fix interest rates for IREDA borrowings for a period of three to four years.

IREDA Signs MoU with Bank of India to co-finance Renewable Energy projects.

On April 10, the Indian Renewable Energy Development Agency Limited (IREDA) hosted a magnificent gathering to mark the ‘Public Sector Day’ in New Delhi. To celebrate the organisation’s legacy, the incumbent officials invited their predecessors and superannuated employees, who in turn participated in full vigour recollecting and sharing priceless insights for the future trajectory of the PSU. During the event, the former CMDs and Directors lauded the rapid growth trajectory of IREDA. They gave credit to the incumbent management’s holistic approach to fostering unprecedented success and ensuring bonhomie in its workforce, including superannuated employees.

IREDA Celebrates Its Legacy On Public Sector Day

Although IREDA reported a 83% year-on-year increase in profit after tax (PAT) in FY22, its total income saw only an 8% YoY growth. The improvement in PAT was primarily due to a marginal improvement in interest margins and controlled credit costs. However, sustaining the current level of profitability while increasing the top-line growth is a challenge for the company.

The interest margins of IREDA may come under pressure in the future because of additional funds availed at a comparatively higher cost. This increase in cost is attributed to the hike in the repo rate announced by the Reserve Bank of India (RBI).

Although there has been an improvement, the asset quality of the company remains stressed. The gross non-performing assets (GNPA) and net non-performing assets (NNPA) levels have decreased, but they still amount to ₹1,768 crore and ₹1,035 crore, respectively, as of March 31, 2022. The majority of these NPAs are related to small hydro projects, biomass power, and cogeneration sectors.

The issuer has made timely interest payments.

Mr.Shri Pradip Kumar Das, Chairman & Managing Director

As a government-owned entity, IREDA receives financial support from the GoI. This support includes equity infusion and guarantees for bond issuances and borrowing from multilateral agencies. 

IREDA is a strategically important entity set up by the GoI under the administrative control of the Ministry of New and Renewable Energy (MNRE). It plays a crucial role in promoting and developing the renewable energy sector in India. Being wholly owned by the GoI signifies its significance and the government's commitment to renewable energy development.

IREDA implements several schemes and programs initiated by the MNRE. These schemes include incentives, tax benefits, and remunerative returns for renewable energy projects. IREDA's alignment with government initiatives enables it to effectively support and finance renewable energy projects in line with the national goals.

8.05%Indian Renewable Energy Development Agency Limited 29 Mar 2027

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INE202E07252

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IREDA Signs MoU with Bank of India to co-finance Renewable Energy projects.

IREDA Celebrates Its Legacy On Public Sector Day

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