IREDA defers plan to raise Rs 600 cr via tax-free bonds

Govt had approved an amount of Rs 5,000 cr via tax-free bonds to support and sustain its solar initiatives through various agencies earlier

State-run Indian Renewable Energy Development Agency has deferred its plan to raise Rs 600 crore by issuing tax-free bonds through private placement till the month-end.

Earlier, the company had planned to raise the said amount by September 10.

The company has taken the decision to defer its bond issue as Indian Renewable Energy Development Agency (IREDA) could not get credit rating well in time for the purpose, an IREDA official said.

"We can issue tax-free bonds after the rating agency gives the rating," the official said.

The government had approved an amount of Rs 5,000 crore via tax-free bonds to support and sustain its solar initiatives through various agencies earlier, and IREDA is assigned an amount of Rs 2,000 crore, Tarun Kapoor, Joint Secretary, Ministry of New and Renewable Energy had earlier said.

"The money raised by IREDA through the issuance of these tax free bonds will be used for financing renewable energy projects," Kapoor had said.

The Joint Secretary had earlier said that IREDA will lend soft loans at the rate of about 10.5 per cent to developers to install roof top solar panels to publicise the solar roof top mission of the government.

"In the current fiscal, the government would be contented if solar projects of 2,000-3,000 MW are implemented," Kapoor had said.

Government in July allowed seven state-owned entities, including IREDA, NTPC and NHAI to raise Rs 40,000 crore in the current fiscal through tax-free bonds.