IREDA signs MoU with MNRE for renewable energy advancement

IREDA and MNRE’s performance-based MoU sets targets for renewable energy growth and financial excellence.

The Indian Renewable Energy Development Agency (IREDA), a Mini Ratna (Category –enterprise under the Ministry of New and Renewable Energy, Government of India, has entered into a performance-based Memorandum of Understanding (MoU) with the Ministry of New and Renewable Energy. Aligned with the Department of Public Enterprises guidelines from the Ministry of Finance, this MoU delineates strategic objectives for IREDA during the fiscal years 2023-24 and 2024-25.

Following the MoU, the Government of India has set forth a target for IREDA to achieve revenue from operations of ₹4,350 crores for the fiscal year 2023-24 and ₹5,220 crores for 2024-25. Notably, in the previous fiscal year, IREDA accomplished a revenue from operations of ₹3,482 crores, surpassing the set target of ₹3,361 crores.

The MoU also outlines various other critical performance indicators, including Return on net worth, return on capital employed, NPA to total loans ratio, asset turnover ratio, and earnings per share.

The signing of the MoU took place at the Atal Akshay Urja Bhawan, New Delhi, with the Secretary of MNRE, Bhupinder Singh Bhalla, and the Chairperson & Managing Director (CMD) of IREDA, Pradip Kumar Das, affixing their signatures. Esteemed officials from both MNRE and IREDA were present on this occasion.

The CMD of IREDA emphasised the company’s commendable performance record over the past three financial years, positioning it favourably to accomplish these ambitious targets. Noteworthy achievements include a remarkable 272 percent increase in Loan Disbursements and a 30 percent growth in Profit after Tax (PAT) during the first quarter of FY 2023-24, compared to the corresponding period in FY 2022-23. Through prudent financial management, IREDA also achieved a significant reduction in Net Non-Performing Assets, lowering the percentage from 2.92 percent in Q1, FY 2022-23, to 1.61 percent in Q1, FY 2023-24. These accomplishments underscore IREDA’s commitment to upholding financial stability while advancing the Renewable Energy sector, stated the CMD.

The CMD further highlighted IREDA’s consistent excellence, evidenced by its ‘Excellent’ rating and a score of over 96 for the MoU over the preceding three financial years. As of August 21, 2023, the company has financed 3,137 Renewable Energy projects, with a cumulative loan sanction of ₹1, 55,694 crores and a loan disbursement of ₹1, 05,245 crores, thereby contributing to a Renewable Energy capacity addition of 22,061 MW in the country.