The government-owned lender Indian Renewable Energy Development Agency’s (IREDA) Board, in its recent deliberation, has approved a borrowing program totaling up to ₹242 billion (~$2.9 billion) for the fiscal year (FY) 2024-25.

The borrowing initiative encompasses various avenues for fund procurement, showcasing IREDA’s strategic approach to financing renewable energy projects in India.

The borrowing plan includes a diverse range of instruments, including taxable bonds, green taxable bonds, subordinated tier-II bonds, perpetual debt instruments, green masala bonds, green foreign currency bonds, foreign currency bonds, term loans from domestic banks and financial institutions, lines of credit from international agencies, public and private placement of tax-free bonds.

It will also include capital gains bonds, commercial papers, short-term loans, cash credit facilities, working capital demand loans from banks, foreign currency non-resident loans from banks, and external commercial borrowings from domestic and international financial markets.

By tapping into diverse funding sources, IREDA aims to facilitate the development and deployment of renewable energy projects while ensuring financial sustainability and flexibility.

In another development, the Ministry of New & Renewable Energy (MNRE) issued an order dated March 27, 2024, conveying the decision of the Appointments Committee of the Cabinet (ACC).

The order pertains to entrusting the additional charge of the post of Director (Technical) at IREDA to Bijay Kumar Mohanty, who currently serves as the Director (Finance) at IREDA.

This appointment is effective for six months commencing from March 5, 2024, or until the appointment of a regular incumbent or until further orders, whichever occurs earliest.

Prior to this appointment, the additional charge of the post of Director (Technical) was held by Pradip Kumar Das, who serves as the Chairman and Managing Director of IREDA until March 4, 2024.

In December, IREDA launched its retail division with an emphasis on providing loans in the Business-to-Consumer (B2C) sector. The strategic initiative targets borrowers under the PM-KUSUM program, rooftop solar consumers, and other B2C segments.

The Central Public Sector Enterprise’s status was elevated from ‘Schedule B’ to ‘Schedule A,’ providing the agency greater financial autonomy and enabling strategic decisions to enhance its mission of expediting renewable energy adoption nationwide. This status elevation is expected to empower the agency with increased financial autonomy to advance renewable energy adoption in India and facilitate green projects in various states.

IREDA reported a 67% year-over-year (YoY) increase in profit after tax for the third quarter (Q3) of the financial year (FY) 2023-24 to ₹3.36 billion (~$40.42 million) from  ₹2.01 billion (~$24.18 million).