The Indian Renewable Energy Development Agency (IREDA) has entered into a performance-oriented Memorandum of Understanding (MoU) with the Ministry of New and Renewable Energy under the Government of India. This MoU, designed in accordance with guidelines issued by the Department of Public Enterprises within the Ministry of Finance, delineates the strategic objectives that IREDA aims to accomplish during the fiscal years 2023-24 and 2024-25.
In accordance with the MoU, the Government of India has stipulated a target of ₹4,350 crores for Revenue from Operations for IREDA in the financial year 2023-24, with an increment to ₹5,220 crores for the subsequent year, 2024-25. Importantly, the previous fiscal year saw IREDA achieve a Revenue from Operations of ₹3,482 crores, surpassing the target of ₹3,361 crores.
The MoU also outlines various significant performance indicators established by the government, including benchmarks for Return on Net Worth, Return on Capital Employed, NPA to Total Loans Ratio, Asset Turnover Ratio, and Earnings per Share.
The signing ceremony of the MoU took place on August 21, 2023, at Atal Akshay Urja Bhawan, New Delhi, and involved the Secretary of MNRE, Bhupinder Singh Bhalla, and the Chairperson & Managing Director (CMD) of IREDA, Pradip Kumar Das. Distinguished officials from both MNRE and IREDA also attended the event.
The CMD of IREDA highlighted the company’s impressive performance record over the preceding three financial years, which positions it favorably to achieve these ambitious objectives. The CMD cited a remarkable 272% surge in Loan Disbursements and a 30% growth in Profit After Tax (PAT) during the first quarter of FY 2023-24, as compared to the corresponding period in FY 2022-23. Furthermore, the company demonstrated prudent financial management by significantly reducing Net Non-Performing Assets (NPAs) to 1.61% in Q1, FY 2023-24, down from 2.92% in Q1, FY 2022-23. These accomplishments underscore IREDA’s commitment to maintaining financial stability while driving the advancement of the Renewable Energy sector, the CMD emphasized.
The CMD noted that IREDA’s consistent excellence is affirmed by its ‘Excellent’ rating and a score of over 96 marks for the MoU in the preceding three financial years. As of August 21, 2023, the company has funded 3,137 Renewable Energy projects, with a cumulative loan sanction amounting to ₹1,55,694 crores and loan disbursements totaling ₹1,05,245 crores. This has facilitated an addition of 22,061 MW in Renewable Energy capacity within the country.
