#IREDA #RenewableEnergy #GreenFinance #MNRE #SustainableGrowth #CleanEnergyIndia
New Delhi — 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), Government of India, establishing ambitious operational and financial targets for the fiscal year 2025-26. The agreement underscores IREDA’s pivotal role in advancing India’s renewable energy ambitions while consolidating its position as a top-performing Central Public Sector Enterprise (CPSE).
The MoU was signed at Atal Akshay Urja Bhawan in New Delhi by Shri Santosh Kumar Sarangi, Secretary, MNRE, and Shri Pradip Kumar Das, Chairman & Managing Director of IREDA, in the presence of senior officials from both organizations.
Revenue Target for FY 2025-26
As per the MoU, the Government of India has set a Revenue from Operations target of ₹8,200 crore for IREDA for FY 2025-26. This comes on the back of the agency’s strong performance in FY 2024-25, when it significantly surpassed its assigned target. Against a target of ₹5,957 crore, IREDA achieved ₹6,743.32 crore, demonstrating both operational efficiency and the growing demand for renewable energy financing.
The new target reflects the government’s confidence in IREDA’s ability to sustain its growth momentum and contribute to India’s clean energy transition.
Key Performance Indicators
Beyond revenue goals, the MoU also outlines a set of critical performance parameters, including:
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Return on Net Worth (RoNW)
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Return on Capital Employed (RoCE)
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Non-Performing Assets (NPA) to Total Loans
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Asset Turnover Ratio
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Earnings Before Tax, Depreciation, and Amortisation (EBTDA)
These parameters will serve as benchmarks to evaluate IREDA’s operational efficiency, financial health, and asset quality throughout the year.
IREDA’s Track Record of Excellence
IREDA has consistently demonstrated exemplary performance over the past several years. Since FY 2020-21, the organization has received an ‘Excellent’ rating in MoU evaluations for four consecutive years. Notably, for FY 2023-24, IREDA was rated the top performer in the Non-Banking Financial Company (NBFC) and Power sector, and among the top four CPSEs across all sectors, according to an evaluation of 84 CPSEs conducted by the Department of Public Enterprises (DPE).
This recognition reinforces IREDA’s reputation as a reliable institution dedicated to financing and promoting renewable energy projects across India.
Leadership Speaks
Expressing confidence in IREDA’s ability to meet the new targets, Shri Pradip Kumar Das, CMD of IREDA, stated:
“With the hope for continuing excellent performance for this year also, we are committed to sustaining our track record of excellence. IREDA has consistently exceeded expectations, and with the trust reposed in us by MNRE and the Government of India, we remain focused on driving renewable energy financing and supporting India’s ambitious green energy goals.”
Driving India’s Renewable Energy Mission
As India strives to meet its net zero commitments by 2070, institutions like IREDA play a central role in bridging the financing gap for renewable energy projects. By supporting developers across solar, wind, small hydro, bioenergy, and emerging clean energy technologies, IREDA has been instrumental in catalyzing private sector participation and accelerating project implementation.
The agency’s financing initiatives also align with the government’s push for energy independence and climate resilience. With India targeting 500 GW of non-fossil fuel energy capacity by 2030, IREDA’s role as a financial facilitator is expected to become even more significant in the coming years.
Recent Performance Highlights
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In FY 2024-25, IREDA crossed several operational milestones, with record loan sanctions and disbursements to renewable energy projects across states.
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The agency expanded its support to newer segments like green hydrogen, battery storage, and electric mobility infrastructure, reflecting its adaptability to evolving energy trends.
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By maintaining a low NPA ratio, IREDA has reinforced its credibility as a financially sound NBFC in the clean energy sector.
A Catalyst for Green Growth
The performance-based MoU signed with MNRE is more than just a financial agreement. It represents the government’s commitment to ensure accountability, efficiency, and growth within CPSEs, while enabling India’s larger renewable energy roadmap. For IREDA, it is both a responsibility and an opportunity to reaffirm its leadership role.
Industry experts note that IREDA’s consistent track record, coupled with its ability to exceed targets, makes it a vital instrument for mobilizing green finance in India. With the global renewable energy sector witnessing rapid growth, IREDA is also exploring opportunities for international partnerships and syndicated financing, which could further strengthen its position in the global green finance ecosystem.
Conclusion
With a revenue target of ₹8,200 crore for FY 2025-26 and a set of ambitious performance benchmarks, IREDA is entering the new financial year on a strong footing. Having consistently delivered on its commitments, the agency now aims to sustain its growth momentum, support emerging clean energy technologies, and cement its role as the financial backbone of India’s renewable energy transition.
As the country accelerates its green growth agenda, IREDA’s performance will be closely watched — not just as a financial metric, but as a measure of India’s ability to achieve its renewable energy ambitions.
#IREDA #RenewableEnergy #GreenFinance #MNRE #SustainableGrowth #CleanEnergyIndia
