Government-owned Indian Renewable Energy Development Agency (IREDA) is likely to be converted from an NBFC into a ‘Green Bank’. The conversion will enable IREDA, engaged in funding projects relating to new and renewable sources of energy, to access funding from the public and overseas banks directly. IREDA’s Director (Technical), B Venkateswara Rao, disclosed this to media in New Delhi.
IREDA also plans to come out with a masala bond issue (rupee denominated bonds subscribed by overseas investors), followed by an IPO by March 2017. IREDA’s move acquires significance as India, as per a study, needs as much as USD 264 billion in financing to reach its target of producing 160 gigawatts of power from solar and wind energy by 2022.
It will also be the trustee for an equity fund that will make investments in clean energy projects. The fund will have raise contributions from various power sector PSUs and overseas investors.
IREDA is a Public Limited Government Company established as a Non-Banking Financial Institution in 1987 under the administrative control of MNRE to promote, develop and extend financial assistance for renewable energy and energy efficiency /conservation projects with the motto: “ENERGY FOR EVER”.
It was awarded “Mini Ratna” (Category -I) status in 2015 by Ministry of New and Renewable Energy (MNRE).