IREDA to finance Renewable Energy projects
The Indian Renewable Energy Development Agency (IREDA) intends to open a branch in Gujarat’s GIFT City to finance renewable energy projects in foreign currency.
The GIFT City office in Gandhinagar will be classed as an overseas office, allowing the IREDA to avoid the cost of foreign exchange hedging.
Pradip Kumar Das, chairman and managing director of IREDA, made the announcement on Thursday at the Ministry of New and Renewable Energy during a panel discussion on “Scaling up Clean Energy Investment in Emerging Economies” under the auspices of G20 events (23 February).
Das emphasized the importance of the Green Taxonomy during the discussion, emphasizing the need to raise Rs 25 lakh crore for green energy projects by 2030.
He proposed mandating insurance and superannuation funds to invest 2% of their assets under management in Green Bonds to finance green energy projects.
He also emphasized IREDA’s growth and commitment to corporate governance, as well as its success in reducing Net NPAs from 7.18% to 2.03% over the last three years.
Das stated that IREDA is the preferred choice for multilateral and bilateral agencies such as the World Bank, KfW, JICA, and ADB when it comes to funding Renewable Energy projects.
He also requested that these agencies review their appraisal process in order to reduce processing time and other bottlenecks and thus speed up financial support.