The Indian Renewable Energy Development Agency Limited (IREDA) has reported a remarkable 303% surge in loan approvals, amounting to US$ 2.15 billion (Rs. 17,860 crore), for the period between April and September of this fiscal year compared to the same period last year. This significant increase underscores the growing demand for renewable energy financing in India, highlighting IREDA's pivotal role in supporting the nation’s transition to green energy.

Increase in Loan Disbursements

In a recent statement, IREDA also highlighted a substantial 56% increase in loan disbursements, which rose to US$ 1.18 billion (Rs. 9,787 crore) from US$ 753 million (Rs. 6,273 crore) in September 2023. This growth reflects the agency's proactive approach in facilitating the financing of clean energy projects and its dedication to promoting sustainable energy solutions.

IREDA's outstanding loan portfolio currently stands at US$ 7.75 billion (Rs. 64,500 crore), marking a 36% growth from US$ 5.71 billion (Rs. 47,514 crore) in the prior year. This robust financial performance is a testament to the increasing interest in clean energy projects across the nation, affirming IREDA's commitment to driving the transition to a greener energy landscape.

Leadership's Commitment

The Chairman and Managing Director of IREDA, Mr. Pradip Kumar Das, emphasized the agency's strong financial performance, stating that it reflects the escalating demand for clean energy financing. He reiterated IREDA's commitment to facilitating the transition to green energy through innovative financing solutions and strategic partnerships.

In a move to further bolster its capital base, last month, IREDA announced government approval to raise US$ 540 million (Rs. 4,500 crore) by issuing equity shares through a Qualified Institutions Placement (QIP). This sanction, endorsed by the Department of Investment and Public Asset Management (Dipam), allows for a potential dilution of the Government of India's stake in IREDA by up to 7% post-issue, which will be executed in one or more stages.

Strengthening Financing Capabilities

The primary aim of this fundraising endeavor is to fortify IREDA's capital base, empowering the organization to amplify its financing capabilities for renewable energy projects. This is crucial for accelerating India's transition towards clean energy, especially as the nation aims to enhance its renewable energy capacity and meet international climate commitments.

IREDA’s significant growth in loan approvals and disbursements, coupled with strategic government support, positions the agency as a key player in India's renewable energy sector. As the country continues to strive for sustainable development, IREDA remains committed to facilitating financial solutions that enable the growth of clean energy initiatives.

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