IREDA plans to raise Rs 600 cr via tax-free bonds by Sep 10

State-run Indian Renewable Energy Development Agency plans to raise Rs 600 crore by issuing tax-free bonds through private placement by September 10.
"We are targetting to issue tax-free bonds up to Rs 600 crore through private placement basis by September 10," an official with Indian Renewable Energy Development Agency (IREDA) said on the condition of anonymity.
However, he refused to give further details.
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 said.

"The money raised by IREDA through the issuance of these tax free bonds will be used for financing renewable energy projects," Kapoor 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.
Last month, state-owned NTPC had said that its tax-free bonds were oversubscribed 7.25 times. NTPC said it targeted raising Rs 300 crore through the bonds but bids were received for Rs 2,175 crore.

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