The Indian Renewable Energy Development Agency (IREDA), a prominent government enterprise under the Ministry of New and Renewable Energy, has entered into a performance-based Memorandum of Understanding (MoU) with the Ministry of New and Renewable Energy, Government of India. The MoU, aligned with guidelines from the Department of Public Enterprises, Ministry of Finance, outlines IREDA’s strategic targets for the fiscal years 2023-24 and 2024-25.
In a significant move towards boosting renewable energy development, the Government of India has established an ambitious Revenue from Operations target for IREDA. For the financial year 2023-24, IREDA aims to achieve a revenue of ₹4,350 crores, followed by a target of ₹5,220 crores for 2024-25. Impressively, IREDA had surpassed its previous fiscal year target of ₹3,361 crores by achieving a Revenue from Operations figure of ₹3,482 crores.
The MoU also highlights several key performance parameters, including Return on Net Worth, Return on Capital Employed, NPA to Total Loans Ratio, Asset Turnover Ratio, and Earnings per Share. These metrics collectively reflect IREDA’s commitment to financial stability and sustainable growth within the renewable energy sector.
The official signing of the MoU took place at Atal Akshay Urja Bhawan, New Delhi, on August 21, 2023. The ceremony was attended by Secretary, MNRE, Bhupinder Singh Bhalla, and Chairperson & Managing Director (CMD), IREDA, Pradip Kumar Das, along with other senior officials from both organizations.
CMD, IREDA, Pradip Kumar Das, emphasized the company’s remarkable track record of performance over the past three financial years, underscoring its preparedness to achieve these ambitious targets. Noteworthy achievements include a substantial 272% increase in Loan Disbursements and a remarkable 30% growth in Profit After Tax (PAT) during the first quarter of FY 2023-24 compared to the same period in FY 2022-23. IREDA also demonstrated prudent financial management by reducing Net Non-Performing Assets (NPAs) to 1.61% in Q1, FY 2023-24 from 2.92% in Q1, FY 2022-23.
The CMD pointed out that IREDA’s consistent excellence is reflected in its ‘Excellent’ rating and over 96 marks secured for the MoU in the preceding three financial years. As of August 21, 2023, IREDA has financed an impressive 3,137 Renewable Energy projects with a cumulative loan sanction of ₹1,55,694 crores and loan disbursement of ₹1,05,245 crores, contributing to a substantial Renewable Energy capacity addition of 22,061 MW in the country.
