IREDA Finances 10,000 Crore Green Projects during 2016–17
The Indian Renewable Energy Development Agency (IREDA) increased its financing of green energy projects considerably in 2016–17, crossing the milestone of Rs 10,000 crore in a single year for the first time. IREDA provided loans of Rs 10,200 crore through 2016–17 for 112 clean energy projects across solar, wind, small hydro, and biogas. “In the coming year, we plan to do Rs 12,500–13,000 crore,” said Shri K S Popli, Chairman and Managing Director.
It nearly doubled its support for solar projects to Rs 4,785.87 crore in 2016–17 from Rs 2,684.68 crore in 2015–16, but its financing of wind projects dropped slightly to Rs 2,511.69 crore from Rs 2,735.51 crore. The company, currently an NBFC under the Ministry of New and Renewable Energy, with mini navratna status, also hopes to come out with an initial public offering later this year. IREDA has also initiated the process of converting from an NBFC to a green bank. The falling tariffs of solar and wind power, thanks to the auction process initiated by the government, may please discoms and consumers, but financiers of renewable energy projects such as IREDA may have reasons to worry as their borrowers’ margins get squeezed.