IREDA gets ‘Infrastructure Finance Company’ status from RBI

Tags: Economy/Finance National News

The Reserve Bank of India (RBI) has granted an ‘Infrastructure Finance Company (IFC)’ status to Indian Renewable Energy Development Agency (IREDA) on 13 March.

An overview of the news

• It was earlier classified as ‘Investment and Credit Company (ICC)’.

• With IFC status, IREDA will be able to take higher exposure in renewable energy financing.

• The IFC status will help the company access a wider investor base to raise funds, resulting in competitive rates for raising funds.

• This will boost investor confidence, enhance brand value and create a positive outlook in the market.

• The awarding of IFC status is recognition of IREDA's 36 years of infrastructure financing and renewable energy development.

• With IFC status, IREDA will contribute to the government's target of 500 GW of non-fossil fuel installed capacity by 2030.

Indian Renewable Energy Development Agency (IREDA) 

• It was incorporated as a Public Limited Company in the year 1987 as a 'Non-Banking Financial Institution'.

• It is a Miniratna (Category 1) type company functioning under the administrative control of 'Ministry of New and Renewable Energy, Government of India.

• Its function is to encourage projects related to new and renewable energy sources and to provide them financial assistance for their development.

• It has been notified as a 'Public Financial Institution' under section 4'A' of the 'Companies Act, 1956'.

• Chairman and Managing Director - Pradip Kumar Das