IREDA Announces Gross Income of ₹17.8 Billion in FY 2017-18
It has also established a line of credit for rooftop solar projects
The Indian Renewable Energy Development Agency (IREDA) has posted gross income worth ₹17.8 billion (~$0.24 billion) in financial year (FY) 2017-18. This is an approximate growth of 20 percent over the previous FY’s gross income of ₹14.82 billion (~$0.20 billion).
The profit before tax (PBT) increased to ₹5.6075 billion (~$0.077 billion) at the end of FY 2017-18, registering an increase of 6.17 percent over the previous year’s PBT of ₹5.28 billion (~$0.07253 billion). Profit after tax (PAT) increased to ₹3.93 billion (~$0.053 billion) at the end of the FY 2017-18, an increase of 7.72 percent over the previous year PAT of ₹3.65 billion (~$0.05 billion), according to an IREDA report.
Loans approved during the year by way of sole, co-financing and consortium financing arrangements are expected to result in a capacity addition of 3,007.13 MW. This is a significant hike when compared to the 2,477.60 MW financed last year.
During the fiscal, IREDA raised ₹19.50 billion (~$0.26 billion) from off-shore market in the form of Green Masala Bonds, stated IREDA Chairman, K.S. Popli.
In his statement, Popli also added, “IREDA also raised resources aggregating to ₹2.03 billion (~0.027 billion) through drawls under the lines of credit signed with multilateral and bilateral agencies. These include, World Bank’s (IBRD) second line of credit as well as ADB’s second line of credit.
IREDA signed a new Line of Credit (LoC) worth $100 million (₹7,282.55 million) with World Bank. This sum includes $75 million (₹5,461.91 million) IBRD loan and $23 million (₹1,674.99 million) Clean Technology Fund (CTF) Loan and $2 million (₹145.651 million) CTF Grant. Moreover, another line of credit worth EUR 150 million with European Investment Bank for a period of 15 years on non-sovereign basis has also been signed.
In the past fiscal, IREDA also started new financing initiatives and programs. These include a program for financing of transmission projects with an exposure cap of 20 percent of the project cost to any single transmission project.
IREDA has also fixed the loan repayment and moratorium period under “Securitization of Future Cash Flows”, which will be maximum of 10 years for all sectors. The maximum time allowed for repayment will not be more than the balance life of PPA minus 5 years. IREDA has also established a line of credit for rooftop solar projects.
At the end of the fiscal, IREDA’s capital risk adequacy ratio (CRAR) stood at 18.05 percent. This is above the permissible limit of 15 percent prescribed under Reserve Bank of India (RBI) norms. IREDA disbursed 81.07 percent of total funds available to it during the last fiscal.
Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.