IREDA: Indian Renewable Energy Development Agency – Background, Functions, Objectives, and Significance

PWOnlyIAS March 13, 2024 12:39 3157 0

IREDA or Indian Renewable Energy Development Agency Limited is a Mini Ratna Government of India Enterprise under the administrative control of Ministry of New and Renewable Energy (MNRE).

IREDA: Indian Renewable Energy Development Agency – Background, Functions, Objectives, and Significance

Context: Recently, on March 11, 2024, the Indian Renewable Energy Development Agency Ltd. (IREDA) celebrated its 38th Foundation Day.

Introduction to IREDA: Indian Renewable Energy Development Agency

IRDA or Indian Renewable Energy Development Agency Limited is a Mini Ratna Government of India Enterprise under the administrative control of Ministry of New and Renewable Energy (MNRE).

IREDA Full Form	Indian Renewable Energy Development Agency
Established Year	1987
Headquarter	New Delhi
Motto	ENERGY FOR EVER
Nodal Ministry	Ministry of New and Renewable Energy (MNRE)
PSU Category	Miniratna (Category I) Status of Miniratna companies are awarded to those which make profits continuously for the last three years or earned a net profit of Rs. 30 crore or more in one of the three years There are a total of 74 Miniratna PSUs in India

Also Read: Pradhanmantri Suryodaya Yojana

IREDA: Indian Renewable Energy Development Agency

It is a government-owned financial institution which works towards promoting, developing, and extending financial assistance for renewable energy and energy efficiency projects.

IREDA

IREDA-Logo

It offers various financial products and services to support renewable energy projects in the field of solar, wind, biomass, and small hydro projects.

It extends its support by providing in the form of loans, project financing, and other financial instruments to individuals, businesses, and organizations involved in the renewable energy sector.

Evolution Of IREDA

1987: It was established later it was classified under the “Public Financial Institution” under section 4 ‘A’ of the Companies Act, 1956, and is officially registered as a Non-Banking Financial Company (NBFC) with the Reserve Bank of India (RBI).
2015: The Ministry of New and Renewable Energy (MNRE) acknowledged IREDA’s contributions by conferring upon it the status of Mini Ratna (Category-I).
2023: The Ministry of New and Renewable Energy, has upgraded IREDA from Schedule B to Schedule A category Central Public Sector Enterprises. This will pave the way for IREDA to potentially attain Navratna status, granting it greater financial autonomy.

Also Read: Clean Energy Share In India And Its States’ Electricity Mix

Objectives of IREDA

Financial Support for Sustainable Energy Projects: 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.
Leadership in Renewable Energy Financing: To maintain its position as a leading organisation to provide efficient and effective financing in renewable energy and energy efficiency / conservation projects.
Innovative Financing Strategies for Renewable Energy: To increase IREDA`s share in the renewable energy sector by way of innovative financing.
Enhancing Customer Service Efficiency: Improvement in the efficiency of services provided to customers through continual improvement of systems, processes and resources.

IREDA

IREDA’s Some Major Projects

Some remarkable projects of IREDA are mentioned in the list.

Energy Power Prak in Andhra Pradesh: 1000 MW Ultra Mega Renewable Energy Power Park in Anantapur, Andhra Pradesh. It sanctioned loans for various phases of this project totaling over Rs. 7000 crore.
Reliance New Solar Energy’s 1000 MW Solar PV Project in Rajasthan: It sanctioned a loan of Rs. 5250 crore for this solar project.
Green Rooftops Scheme: It promotes installations of solar rooftops across India, and also played a crucial role in its implementation by providing financial assistance and technical support.
World’s First Floating Solar PV Project: It sanctioned a loan for this innovative project, demonstrating the potential of floating solar installations in Ramagundam, Telangana.
Financing Battery Energy Storage Systems (BESS): It has been at the forefront of financing BESS projects by recognizing their importance in grid integration and renewable energy management.

Also Read: India Joins Battery Energy Storage Systems Consortium

Recent Developments of IREDA

February 2024: Indian Renewable Energy Development Agency has got RBI approval to set up a wholly owned subsidiary in the International Financial Services Centre (IFSC) situated in GIFT City in Gujarat.
February 2024: Indian Renewable Energy Development Agency Limited has signed a memorandum of understanding (MoU) with the Indian Institute of Technology (IIT) Bhubaneswar with the objective to bolster innovation and research in the renewable energy sector.
February 2024: Indian Renewable Energy Development Agency and Punjab National Bank (PNB) have signed a Memorandum of Understanding (MoU) aimed at advancing renewable energy initiatives across the nation.
January 2024: Pahal Initiative: Indian Renewable Energy Development Agency 25th January 2024 unveiled ‘Pahal’, The insightful house journal of the Vigilance Department.
- This journal will serve as a platform for sharing insights, updates, and articles related to the vigilance department’s activities, promoting a culture of openness within the organization.
- Indian Renewable Energy Development Agency expressed excitement for the initiative, underlining the potential impact of heightened involvement from employees and children in ‘Pahal.
- The initiative marks a significant step towards transparency, accountability, and the promotion of renewable energy initiatives by Indian Renewable Energy Development Agency.
October 2023: The Ministry of New and Renewable Energy, Government of India, has upgraded IREDA from ‘Schedule B’ to ‘Schedule A’ category Central Public Sector Enterprises.

Also Read: Article 142 of Indian Constitution and Its Relation to Judicial Activism and Judicial Restraint

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Frequently Asked Questions

Full form of IREDA is Indian Renewable Energy Development Agency.

No both are different regulatory bodies. IREDA is Indian Renewable Energy Development Agency, whereas IRDA is Insurance Regulatory and Development Authority of India.

No, It is a Mini Ratna company.

New Delhi.

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IREDA: Indian Renewable Energy Development Agency – Background, Functions, Objectives, and Significance

Introduction to IREDA: Indian Renewable Energy Development Agency

IREDA: Indian Renewable Energy Development Agency

Evolution Of IREDA

Objectives of IREDA

IREDA’s Some Major Projects

Recent Developments of IREDA

Frequently Asked Questions

What is the full form of IREDA?

Is IREDA and IRDA the same?

Is IREDA a Maharatna company?

Where is the headquarter of IREDA?

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