By Enersider Desk | New Delhi
In a significant move to bolster India’s renewable energy financing sector, the Indian Renewable Energy Development Agency Limited (IREDA) has inked a performance-based Memorandum of Understanding (MoU) with the Ministry of New and Renewable Energy (MNRE). The agreement, signed on Tuesday, sets forth a robust strategic roadmap and ambitious financial targets for the fiscal year 2025-26. The signing ceremony, held at the Atal Akshay Urja Bhawan in New Delhi, was attended by senior officials from both entities. The document was formally executed by Shri Santosh Kumar Sarangi, Secretary of the MNRE, and Shri Pradip Kumar Das, Chairman & Managing Director of IREDA.
A central pillar of this MoU is the formidable Revenue from Operations target of ₹8,200 crores set by the Government of India for IREDA to achieve in FY 2025-26. This ambitious goal builds upon the agency’s exceptional performance in the previous fiscal year 2024-25, where it significantly exceeded its target. IREDA posted an actual revenue of ₹6,743.32 crores, surpassing the goal of ₹5,957 crores by a considerable margin. Beyond top-line revenue, the MoU encompasses a comprehensive set of key performance indicators designed to ensure operational excellence and financial discipline. These parameters include Return on Net Worth, Return on Capital Employed, the ratio of Non-Performing Assets to Total Loans, Asset Turnover Ratio, and EBTDA (Earnings Before Tax, Depreciation, and Amortization).
Expressing strong confidence in the company’s trajectory, Shri Pradip Kumar Das, CMD of IREDA, reiterated the team’s commitment to upholding its legacy of excellence. He highlighted IREDA’s consistent track record, noting that the organization has secured an ‘Excellent’ rating in its MoU performance for four consecutive years since FY 2020-21. Furthermore, for the FY 2023-24 assessment, IREDA was ranked as the top-performing Non-Banking Financial Company (NBFC) in the power sector and was counted among the top four Central Public Sector Enterprises (CPSEs) nationwide, a distinction based on an evaluation of 84 government-owned companies by the Department of Public Enterprises.
This performance-based agreement underscores the critical role IREDA is expected to play in accelerating India’s transition to green energy by ensuring the efficient and profitable disbursement of funding for renewable projects.
Image Credits : PIB
