Renewable Lender IREDA Approved 37% More Loans in FY 2022-23
Higher loan sanctions show robust renewable growth in the country
March 29, 2023
The Indian Renewable Energy Development Agency (IREDA) has approved ₹327.6 billion (~$4 billion) worth of loans as on March 27, up 37% year-over-year (YoY), which reflects the continued growth of the renewable energy sector in the country.
The government-owned lender disbursed ₹163.2 billion (~$1.98 billion) of loans during FY 2022-23, surpassing the previous highest annual loan disbursement of ₹160.71 billion (~$2 billion) in FY 2021-22.
Chairman and Managing Director of IREDA Pradip Kumar Das said, “The record-breaking loan disbursement and sanction reflect the company’s commitment to promoting and financing Renewable Energy projects in India. We are confident that this will further strengthen our position as a leading financial institution in the RE sector in the country.”
Earlier this month, IREDA received the cabinet’s approval for listing on the stock exchange after an initial public offering (IPO) via a part sale of the government’s stake. The stock listing will help the public acquire the government’s stake in the company and unlock the value of the investment.
The IPO would help IREDA raise a part of its capital requirement to meet the growth plans without depending on the public exchequer and improve governance through greater market discipline and transparency.
IREDA posted a net profit of ₹2 billion (~$24.3 million) for the third quarter of the financial year 2022-23, a jump of 88% YoY. The company disbursed loans worth ₹63.4 billion (~$768 million), a growth of 327% YoY while loans approved for the quarter amounted to ₹90.2 billion (~$1.09 billion), a jump of 527% YoY.
Also, in February this year, IREDA’s Chairman said that the company planned to finance renewable energy projects in foreign currency and it would set up an office in Gujarat International Finance Tec-City in Gandhinagar to that end.
It would help IREDA avoid foreign exchange hedging costs. Das stressed the importance of the green taxonomy to raise approximately ₹250 million (~$3 million) funds for green projects by the end of the current decade.