IREDA is a Non-Banking Financial Institution under the administrative control of Ministry of New and Renewable Energy (MNRE) for providing term loans for renewable energy and energy efficiency projects.

IREDA is a Mini Ratna (Category – I) Government of India Enterprise.

IREDA is a Public Limited Government Company established in 1987 , engaged in promoting, developing and extending financial assistance for setting up projects relating to new and renewable sources of energy and energy efficiency/conservation with the motto: “ENERGY FOR EVER”.

It is India’s largest dedicated green financing non-banking finance company (NBFC) and has a diverse investment portfolio worth ₹47,206.66 crore, spanning 23 states and five union territories.

Aims and Policies of IREDA

Financing Renewable energy projects.

Supporting green power capacity.

Financing the setting up of solar manufacturing units.

Objectives of IREDA

1 . To give financial support to specific projects and schemes for generating electricity and / or energy through new and renewable sources and conserving energy through energy efficiency.

2 . To maintain its position as a leading organisation to provide efficient and effective financing in renewable energy and energy efficiency / conservation projects.

3 . To increase IREDA`s share in the renewable energy sector by way of innovative financing.

4 . Improvement in the efficiency of services provided to customers through continual improvement of systems, processes and resources.

5 . To strive to be competitive institution through customer satisfaction.

Mission of IREDA

IREDA’s mission is “Be a pioneering, participant friendly and competitive institution for financing and promoting self-sustaining investment in energy generation from Renewable Sources, Energy Efficiency and Environmental Technologies for sustainable development.”

Functions of IREDA

IREDA offers long-term, medium-term, and short-term loans, top-up loans, bridge loans, takeover financing, loans secured against future cashflows, and lines of credit to NBFCs. It also offers non-fund-based products such as letters of comfort, letters of undertaking, payment on order instruments, guarantee assistance schemes, and consultancy services.

PRACTICE QUESTIONS

QUES . With reference to the Indian Renewable Energy Development Agency Limited (IREDA), which of the following statements is/are correct? UPSC 2015

1 . It is a Public Limited Government Company.

2 . It is a Non – Banking Financial Company.

Select the correct answer using the code given below.

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 or 2

Answer: (c)