In a significant move towards advancing India’s renewable energy goals, the Indian Renewable Energy Development Agency (IREDA), a prominent Mini Ratna (Category – I) government enterprise operating under the Ministry of New and Renewable Energy, has entered a performance-oriented Memorandum of Understanding (MoU) with the Indian Government’s Ministry of New and Renewable Energy. The MoU is aligned with the guidelines stipulated by the Department of Public Enterprises under the Ministry of Finance. It outlines IREDA’s strategic objectives for the fiscal years 2023-24 and 2024-25.
As per the MoU, the Indian Government has set ambitious Revenue from Operations targets for IREDA, amounting to ₹4,350 crores for the financial year 2023-24 and ₹5,220 crores for 2024-25. Notably, IREDA achieved a revenue of ₹3,482 crores in the previous fiscal year, surpassing the target of ₹3,361 crores.The MoU also highlights several crucial performance indicators, including Return on Net Worth, Return on Capital Employed, NPA to Total Loans Ratio, Asset Turnover Ratio, and Earnings per Share.
The signing ceremony took place at Atal Akshay Urja Bhawan, New Delhi on August 21, 2023, with the participation of key officials from both the Ministry of New and Renewable Energy and IREDA. The MoU was signed by Shri Bhupinder Singh Bhalla, Secretary of MNRE, and Shri Pradip Kumar Das, Chairperson & Managing Director of IREDA.
Shri Pradip Kumar Das, CMD of IREDA, underscored the company’s impressive track record, with a notable 272% surge in Loan Disbursements and a 30% growth in Profit After Tax during Q1 of FY 2023-24 compared to the same period in the previous fiscal year. He emphasized IREDA’s commitment to financial stability while driving growth in the Renewable Energy sector. Notably, IREDA’s financial prowess has led to a remarkable reduction in Net Non-Performing Assets, from 2.92% in Q1 FY 2022-23 to 1.61% in Q1 FY 2023-24.
IREDA’s stellar performance is evident in its consistent ‘Excellent’ rating and over 96 marks secured in the MoU over the past three fiscal years. The company, as of August 21, 2023, has financed 3,137 Renewable Energy projects with a cumulative loan sanction of ₹1,55,694 crores, contributing to a Renewable Energy capacity addition of 22,061 MW in India.
