IREDA & IIFCL Unite for Financing of Renewable Energy Projects

IREDA Partners with Bank of Maharashtra for Renewable Energy

A Mini Ratna (Category – I) Government of India enterprise under Ministry of New and Renewable Energy, Indian Renewable Energy Development Agency Ltd., (IREDA) has joined hands with India Infrastructure Finance Co. Ltd (IIFCL). The MoU signed between the two entities will pave the for the financing of renewable energy projects.

IREDA and IIFCL will look into co-lending (co-origination) and loan syndication for renewable energy projects of all categories, which will also encompass small hydro projects. The two firms will also look to fix interest rates for IREDA borrowings for a period of three to four years. IIFCL may also make an investment in the bonds issued by IREDA, IREDA said. 

The MoU will also see an exchange of synergies by capitalising on IREDA’s green financing expertise and IIFCL’s infra financing expertise.

Recently, IREDA signed a performance-based Memorandum of Understanding (MoU) with the Ministry of New and Renewable Energy, in alignment with guidelines issued by Department of Public Enterprises, Ministry of Finance, outlining strategic targets that IREDA aims to achieve during the fiscal years 2023-24 and 2024-25. In Q1 FY24, it reported an all-time high Quarterly Profit After Tax (PAT) of Rs. 295 crores and Profit Before Tax (PBT) of Rs. 440 crores in the first Quarter of the fiscal year 2023-24. This achievement marks a notable growth of 30% and 29% respectively, compared to the corresponding period of the previous financial year 2022-23. IREDA has also demonstrated a significant reduction in Net Non-Performing Assets (NPAs), bringing them down to 1.61% in Q1, FY 2023-24 from 2.92% in Q1, FY 2022-23, representing a remarkable 45% reduction (in percentage terms) on a year-on-year basis.