IREDA signs MoU with Government

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Indian Renewable Energy Development Agency (IREDA), a Mini Ratna (Category – I) Government of India enterprise under the administrative control of Ministry of New and Renewable Energy, has signed a performance-based Memorandum of Understanding (MoU) with the Ministry of New and Renewable Energy, Government of India. The MoU, in alignment with guidelines issued by Department of Public Enterprises, Ministry of Finance, outlines strategic targets that IREDA aims to achieve during the fiscal years 2023-24 and 2024-25.

As per the MoU, the Government of India has set a Revenue from Operations target for IREDA, of ₹ 4,350 crores for the financial year 2023-24 and ₹ 5,220 crores for 2024-25. Notably, the company had achieved a Revenue from Operations figure of ₹ 3,482 crores in the preceding fiscal year, against a target of ₹ 3,361 crores.

The government has also specified other key performance parameters in the MoU, including Return on Net Worth, Return on Capital Employed, NPA to Total Loans Ratio, Asset Turnover Ratio, and Earnings per Share.

The MoU was signed by Secretary, MNRE, Shri Bhupinder Singh Bhalla and Chairperson & Managing Director (CMD), IREDA, Shri Pradip Kumar Das at Atal Akshay Urja Bhawan, New Delhi on August 21, 2023. Other senior officials of MNRE and IREDA were also present on the occasion.

CMD, IREDA emphasized the company’s outstanding track record of performance over the past three financial years, positioning the company well to achieve these ambitious targets. The CMD recalled that the company marked an impressive 272% jump in Loan Disbursements and a 30% growth in Profit After Tax (PAT) during the first quarter of FY 2023-24, compared to the corresponding period in FY 2022-23. Demonstrating sensible financial management, IREDA also achieved a remarkable reduction in Net Non-Performing Assets (NPAs), lowering the figure to 1.61% in Q1, FY 2023-24 from 2.92% in Q1, FY 2022-23. These achievements underscore IREDA’s dedication to maintaining financial stability while promoting the Renewable Energy sector, said the CMD.

The CMD informed that IREDA’s track record of consistent excellence is evident by its ‘Excellent’ rating and over 96 marks secured for the MoU in the preceding three financial years. The company, as on 21st August 2023, has financed 3,137 Renewable Energy projects with cumulative loan sanction of ₹ 1,55,694 crores and loan disbursement of ₹ 1,05,245 crores and has supported Renewable Energy capacity addition of 22,061 MW in the country.

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