IREDA to convert to Green Bank, says chairman and managing director K S Popli
Indian Renewable Energy Development Agency (IREDA) may soon be converted into a Green Bank, its chairman and managing director K S Popli said on Wednesday in a statement. Indian Renewable Energy Development Agency (IREDA) may soon be converted into a Green Bank, its chairman and managing director K S Popli said on Wednesday in a statement. Popli said IREDA might be converted to a Green Bank without undergoing any altercation in its basic structure to enable it access to funds from foreign banks that are not currently supporting solar and wind projects. With IREDA conversion into Green Bank, it would be entitled to avail benefits the agency is currently deprived of and the proposal is being well supported by the power ministry,” he said without specifying any time frame.Popli said, “Large banks in India are perhaps reluctant to fund solar and wind projects due to large scale usage of Chinese products though no developers in these two segments have defaulted on re-payment. Some have, however, delayed their pay-off schedule. IREDA is a category-I, mini ratna central sector enterprise under the administrative control of ministry of new and renewable energy (MNRE). It was established as a non-banking financial institution in 1987 and has been engaged in promoting, developing and extending financial assistance for setting up projects relating to new and renewable sources of energy. It is involved in offering financial support to specific projects and schemes for generating electricity and through new and renewable sources and conserving energy through energy efficiency. It also aims to increase IREDA’s share in the renewable energy sector by way of innovative financing. In the recent past, private lender Yes Bank entered into an agreement with IREDA to foster renewable energy (RE) development in India. The agreement was to boost green energy financing and help forge a close partnership between both institutions to create a supporting framework for funding of renewable energy and energy-efficient projects. Yes Bank will also support the initiatives of IREDA in the development of these critical sectors.