The Indian Renewable Energy Development Agency (IREDA) has been elevated from ‘Schedule B’ to ‘Schedule A’ Central Public Sector Enterprise (CPSE), providing the agency greater financial autonomy and enabling strategic decisions to enhance its mission of expediting renewable energy adoption nationwide.
The upgrade, as announced by the Department of Public Enterprises in the Ministry of Finance, has received formal endorsement from the Ministry of New and Renewable Energy. It empowers the agency with increased financial autonomy to advance renewable energy adoption in India and facilitate green projects in various states.
The upgrade sets the stage for IREDA’s potential transition to “Navratna” status, given its consistent growth and financial achievements.The Navratna classification for CPSEs hinges on criteria like Mini Ratna I and Schedule A status, excellent or very good MOU ratings, and a composite score of 60 or more, providing increased financial and operational authority to foster their global potential.
IREDA, which is currently a “Mini Ratna (Category– I),” has a consistent track record of robust growth, business performance, and sound asset quality, as highlighted by the following achievements:
IREDA, a green finance non-banking Finance company, has recently secured significant external funding to support projects related to new and renewable energy, energy efficiency, and conservation across the country. With this elevation in position, IREDA has become the 67th company on the list of Schedule A companies.
In June, India Ratings upgraded the credit rating of the IREDA to ‘AAA’ with a stable outlook, signifying a high degree of creditworthiness, and this upgrade applies to various debt instruments, including tax-free bonds, taxable bonds, taxable green bonds, unsecured taxable bonds, and others.
The CPSE is even planning to finance renewable energy projects in foreign currency by establishing an overseas office in Gujarat’s GIFT City in Gandhinagar, aimed at reducing foreign exchange hedging costs and raising around ₹250 million ($3 million) for green projects by the end of the decade.
In March, IREDA received approval for its IPO stock exchange listing, involving a partial government stake sale. The IPO aims to secure funds for IREDA’s expansion, reduce its dependence on public funds, and improve governance through heightened market discipline and transparency mandated by listing requirements.
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