The Indian Renewable Energy Development Agency (Ireda), a government of India enterprise responsible for advancing renewable energy, has signed a performance-focused memorandum of understanding (MoU) with the Ministry of New and Renewable Energy (MNRE). As part of this MoU, the Centre has set a target to achieve Rs 4,350 crore in revenue from operations in the financial year 2023-2024 and Rs 5,220 crore in financial year 2024-25.
The MoU draws these key objectives to be in line with the guidelines from the Department of Public Enterprises under the Ministry of Finance.
In the previous financial year, Ireda achieved revenue from operations of Rs 3,482 crore, surpassing the target of Rs 3,361 crore.
The MoU also outlines other essential performance parameters, including return on net worth, return on capital employed, non-performing asset (NPA) to total loans ratio, asset turnover ratio, and earnings per share.
During the first quarter of 2023-2024, Ireda witnessed a 272 per cent increase in loan disbursements and a 30 per cent growth in profit after tax (PAT) when compared to the same period last year.
Ireda also effectively reduced its net non-performing assets (NPAs), decreasing the figure from 2.92 per cent in the first quarter (Q1) of the last financial year to 1.61 per cent in Q1, 2023-2024.
CMD further revealed that Ireda received an 'Excellent' rating and a score over 96 for the MoU over the past three financial years.
As of August 21, 2023, Ireda has successfully financed 3,137 renewable energy projects with a cumulative loan sanction Rs 1.55 trillion, resulting in loan disbursements totalling of more than Rs 1.05 trillion.
Additionally, the organisation has played a crucial role in supporting the country's addition of 22,061 MW of renewable energy capacity.
This MoU was formally signed by Bhupinder Singh Bhalla, the secretary of MNRE, and Pradip Kumar Das, the chairperson & managing director (CMD) of Ireda. The signing took place at Atal Akshay Urja Bhawan in New Delhi on Monday. Officials from both MNRE and Ireda were present to witness the event.